Swaraj Abhiyan, a group formed by the duo and their supporters after their expulsion from the AAP, said they are "seriously thinking" about contesting the assembly elections in Punjab.
"We intend to launch a political party soon, but no date has been fixed. But yes, we are seriously thinking about contesting Punjab polls," a senior Swaraj Abhiyan leader said.
Meanwhile, the party has said it will "back" musician Bhai Baldeep Singh from Khadoor Sahib assembly during by-poll in Punjab next month.
"Swaraj Abhiyan is currently a non-political organisation and we don't hope to launch the party by next month. Bhai Baldeep Singh will contest as an independent and will be backed by Swaraj Abhiyan. We will be putting all our weight behind him," he said.
Bhai Baldeep Singh, who is also a part of the national executive of the organisation, said, "Swaraj Abhiyan's support is crucial for the polls."
Yadav and other Abhiyan leaders are also expected to campaign for Singh next month.
The decision to support Singh was taken on Sunday. He had contested 2014 Lok Sabha polls on AAP ticket from Khadoor Sahib, but had lost.
The seat fell vacant after Congress MLA Ramanjit Singh Sikki resigned from the Assembly in protest against the sacrilege incidents in the state.
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