Karnataka Chief Minister B S Yeddyurappa on Saturday claimed the crisis dogging his government has been ''resolved'' and that he will continue in the post for a full term.

However, dissident leader Janaradhan Reddy, who questioned talk of compromise, was closeted with his brother Karunakar Reddy and another dissident minister B Sreeramulu in Bangalore finalising their strategy.

"I am thankful to the party national leadership for reposing faith in my leadership and resolving the present crisis. The government will complete its full term under my leadership in the state," Yeddyurappa told reporters before leaving for Jammu to offer prayers at the Mata Vaishnodevi shrine there.

He, however, refused to disclose the details of the compromise formula. On Friday, he had said that in accordance with the wishes of the Reddy brothers he had already transferred his Principal Secretary V P Baligar and would be conceding some other of their demands.

It is understood that Rural Development Minister Shoba Karanlaje, whose removal has been demanded by the dissidents, is likely to be dropped and Speaker Jagadish Shettar may be inducted into the cabinet.

Yeddyurappa is expected to be back in the capital in the evening for meetings with the BJP Central leadership before leaving for Bangalore.

Asked whether the crisis has been resolved, the Chief Minister said, "Yesterday the party leadership asked me to stay for one day. Everything has been resolved before going to Bangalore. I will meet them (leaders) again today."

However, Janardhan Reddy, before leaving for Bangalore from Hyderabad, dismissed any talk of compromise.

"Yesterday only I told you regarding this formula and all. I don't know how the media, they are saying with what source they are saying...I don't know," he said.

He said there was no change in his stand."I have stuck by whatever I have told....I also stand by it today".

Yeddyurappa appeared optimistic about reaching a solution by the evening and again sent overtures to the Reddy brothers for talks.

"My wish is to take everyone into confidence. I will take everyone into confidence in running the government and there is no chance of any unlawful activities in the state," he said.

The Chief Minister's camp was hopeful the Reddy brothers will return to the capital by evening.

"I am returning to the state today and will continue to tour the flood-affected areas. I will also review the relief and rehabilitation measures," Yeddyurappa said.

Meanwhile, sources close to the Chief Minister sought to downplay the resignation by the rebel MLAs, saying "In a democracy, MLAs send their resignations to either the party president, Chief Minister or the Governor. These MLAs claim to have sent their resignations to the dissident leaders."