Governor Syed Ahmed is learnt to have recommended President's rule in the state by keeping the Assembly under suspended animation.
The recommendation was made in his second report to the Centre on the political situation in the wake of the resignation of Chief Minister Arjun Munda who also sought dissolution of the Assembly after JMM withdrew support to his Government, official sources said.
Union Home Minister Sushilkumar Shinde, who is away from the capital in the last two days, is expected to study the report after his arrival tonight.
The Home Ministry is likely to prepare a note to be presented before the next cabinet meeting where the Jharkhand situation would be discussed before taking next course of action.
The Governor also met the Congress, RJD and Left parties before sending his report, the sources said.
Jharkhand has twice been placed under President's rule.
The Jharkhand Mukti Morcha had on Saturday requested the Governor for more time for government formation.
The lone Jharkhand Janadhikar Manch MLA Bandhu Tirkey and independent MLA Chamra Linda called on the governor today, Raj Bhavan sources said, but did not reveal details of the meeting.
Tirkey and Linda had on Saturday said that they would support the formation of any new government.
The present political crisis erupted on January 8 when BJP's ruling coalition partner JMM, in a letter to the Governor, formally withdrew its support to the 28-month-old government pushing it into a minority.
In the 82-member state assembly, BJP and JMM have 18 members each. The Munda government had the support of six members of All Jharkhand Students' Union, two of JD (U), two independents and one nominated member who has voting right in a trial of strength.
Opposition Congress has a total of 13 members, Jharkhand Vikas Morcha(P)11 and RJD 5 in the assembly. CPI-ML(L), Marxist Coordination Party, Jharkhand Party (Ekka), Jharkhand Janadhikar Manch and Jai Bharat Samta Party have one member each besides an independent.