Lt Governor Najeeb Jung on Saturday sent a detailed report to President Pranab Mukherjee about the current political situation and mentioned that government-formation in Delhi was not possible now.
The tenure of the current assembly will end on December 18 and President's Rule has to be imposed after that if a government is not put in place by then, top officials said.
They said Jung was now waiting for a directive from the Centre.
Aam Aadmi Party had on Saturday put the onus on Congress and BJP for taking its support to form a government by putting forth 18 conditions and wanting to know their views on them, a move seen as an attempt to rebut criticism that it was shying away from taking responsibility.
BJP, along with its ally Akali Dal's one seat, has 32 MLAs in the 70-member House while AAP has 28 seats followed by Congress' eight. JD(U) won one seat while the Mundka seat went to an Independent.
BJP had declined to form government citing lack of majority following which Jung had invited AAP chief Arvind Kejriwal to discuss government formation.
In a surprise move, Congress had on Friday submitted a letter to the Lt Governor extending "unconditional support" to AAP to form government.
Meanwhile, BJP today attacked AAP saying the party was not interested in forming the government as it will not be able to fulfil the promises made in its manifesto.
AAP had promised to cut power tariff by 50 per cent and supply 700 litres of water free to each household daily.
"AAP is scared of being exposed. There are apparent contradictions in its stand as, on one hand, AAP leaders are criticising other political parties and then it is writing letters to them about support in forming the government," Delhi BJP president Vijay Goel said.
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