Reddy, who arrived in the national capital in the wee hours, had an hour-long meeting with AICC General Secretary in-charge of the state Ghulam Nabi Azad soon after his arrival.
He then drove to the residence of Gandhi where her political secretary Ahmed Patel also joined in.The meeting is underway.
Party spokesperson P C Chacko had said on January 30 that Congress is not against the formation of Telangana but it needs time to complete the formalities. He signalled that the process has been put on the fast track.
"Congress is not against the formation of Telangana state. We are in the process of taking a decision but then formalities have to be completed," Chacko had told reporters.
His remarks had come even as Congress MPs from Telangana were waiting for an appointment with Gandhi for submitting their resignation to press for an early creation of a separate state.
Andhra Pradesh chief minister N Kiran Kumar Reddy met Congress leader Ghulam Nabi Azad too to discuss the Telangana issue here on Monday, said reports.
According to reports, Union minister Azad, who is in charge of Congress affairs in Andhra Pradesh, had said the party's central leadership would discuss the Telangana issue with the chief minister, the Pradesh Congress Committee president and senior leaders from the three regions of the state.
On January 27, the Centre deferred a decision on whether the Telangana region of Andhra Pradesh should be carved into a separate state, prompting sharp criticism of the ruling Congress party by the Opposition and activists.
Protests have long rocked Andhra Pradesh for a separate Telangana state exerting pressure on the Congress-led United Progressive Alliance (UPA) government at the Centre to expedite the bifurcation of the state, carving out the Telangana region with AP's current capital Hyderabad as its main city.
The Telangana region, which merged with Andhra Pradesh in 1956 against the wishes of many local residents, comprises of 10 districts - Adilabad, Hyderabad, Khammam, Karimnagar, Mahbubnagar, Medak, Nalgonda, Nizamabad, Rangareddy, and Warangal.
As the movement to divide the state gained momentum, politicians from coastal Andhra Pradesh and Rayalaseema regions want the state of 85 million people to remain unified, and especially oppose tearing out the IT-hub city Hyderabad that would affect the state's economy.