The speculation has been triggered following her meeting with Congress chief Sonia Gandhi last week.
"I am returning to AP politics and I will soon announce which party I will join," Jaya Prada has been saying in recent days.
She has also expressed her desire to contest the next Lok Sabha election from her hometown Rajahmundry.
Sitting Congress MP from Rajahmundry Vundavalli Arun Kumar announced the other day that he would be too glad to make way for Jaya Prada.
"As a loyal Congress solider, I will honour the party decision and work for the victory of its nominee," the two-time MP said.
After films, Jaya Prada began her political career in the mid-1990s in the Telugu Desam Party. She was elected to Rajya Sabha in 1996 on behalf of the party from AP. She, however, quit the TDP and joined the Samajwadi Party ahead of the 2004 elections and shifted base to UP.
She was elected to Lok Sabha twice from Rampur but subsequently walked out of the SP along with Amar Singh.
In recent times, during her regular visits to the state, the actress-politician, who turned 52 last month, has been announcing that she would return to AP politics soon and contest the next election from her hometown.
At one point, there was talk that she might join the YSR Congress but her recent meeting with Sonia Gandhi indicated that Jaya Prada may join the Congress camp.