Indications are that Lt Governor Najeeb Jung, who met leaders of the three political parties, may send his recommendation to the President for dissolving the assembly any time.
While BJP declined the LG's offer to form a government, AAP and Congress made it clear that they were in favour of immediate elections.
The LG held consultations in the wake of the Supreme Court putting the issue on the fast track and giving him time till November 11 to explore the possibility of forming a government.
The court was hearing AAP's petition seeking early dissolution of the Assembly which has been under suspended animation since February after the fall of the AAP government.
Satish Upadhyay and Jagdish Mukhi of BJP, Haroon Yusuf of Congress and AAP's Arvind Kejriwal and Manish Sisodia met the Lt Governor.
"All the above parties expressed their inability to form the government. The Lt Governor would be sending his report to the Hon'ble President," a Raj Niwas release said.
Currently BJP, along with ally Akali Dal's lone MLA, has 29 legislators and would require the support of five more MLAs to prove majority in the 67-member Assembly.
BJP had emerged as the single largest party in the December Assembly polls winning 31 seats but fell four seats short of a simple majority. It had refused to form government then, saying it will not resort to any "unfair means" to take over the reins.
AAP had formed the government in Delhi with the support of Congress. The government led by Kejriwal had resigned on February 14 after the party's pet project, the Janlokpal Bill, could not be passed due to opposition from BJP and Congress.
President's Rule was imposed on February 17.