New Delhi, Jan 17 (Agencies) : Putting to rest all speculations about a possible alliance between his party and the ruling Samajwadi Party, senior Congress leader Ghulam Nabi Azad on Tuesday said that the two parties will contest the upcoming assembly polls in Uttar Pradesh together.

Azad also confirmed that the Congress-Samajwadi Party alliance will contest the crucial polls under the leader of Chief Minister Akhilesh Yadav.

There will be Congress and Samajwadi Party alliance in upcoming UP elections, Azad said.

Details about it will be decided in coming days, for now we can say that there will be Congress-SP alliance under leadership of Akhilesh Yadav, added Azad.

The confirmation from the Congress came a day after the Election Commission ruled in favour of Akhilesh Yadav in the ongoing battle for Samajwadi Party symbol 'cycle'.

The Election Commission ruling in favour of Akhilesh has also set the stage for the formation of a grand alliance of like-minded parties in Uttar Pradesh and other states.

A 'Mahagathbandhan' - on the lines of the JD(U)-RJD-Congress alliance in Bihar - comprising of the Samajwadi Party, Congress and Rashtriya Lok Dal has now come a step closer to reality after the EC decision in favour of Akhilesh Yadav.

As of now it is an alliance of Congress and SP. We will think about a 'Mahagathbandhan' in coming days, Azad said.

The young UP CM's closest confidante and uncle Ram Gopal Yadav had yesterday hinted that as per his own view there we an alliance with the Congress but the final decision on the matter will be taken by Akhilesh himself.

Media reports have suggested that the Congress and Rashtriya Lok Dal (RLD) combine may get at least 120-125 of the total 403 seats.

Sheila Dikshit to withdraw 'gracefully' as Congress CM nominee

Meanwhile, veteran Congress leader Sheila Dikshit, who had congratulated Uttar Pradesh Chief Minister Akhilesh Yadav on the Election Commission allotting the 'cycle' symbol to his faction of the Samajwadi Party, today said that she would like to gracefully withdraw as Congress CM nominee now.

I would like to gracefully withdraw as we cannot have two CM candidates for the elections, Sheila Dikshit was quoted as saying by ANI.

"I congratulate Akhilesh Yadav on getting the party symbol. It is good that the Election Commission has taken a decision on the issue," she had said.

Earlier this month, Dikshit had said in case of an alliance, Akhilesh was likely to be the face of the campaign and that she would like to step aside.

Earlier, the Election Commission gave its order on the demand for ‘cycle’ symbol by the two warring factions of the Samajwadi Party — led by Akhilesh and his father Mulayam Singh, respectively.

The EC ruled in favour of Akhilesh, apparently on the basis of the fact that he had an overwhelming support from the party rank and file.

Uttar Pradesh — the country’s most populous and politically significant state — will elect a new 403-seat state assembly in seven phases: February 11 (73 seats), February 15 (67 seats), February 19 (69 seats), February 23 (53 seats), February 27 (52 seats), March 4 (49 seats) and March 8 (40 seats).