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Nath was camping in Delhi and he has almost received a green signal from the party high command for the exercise, he said, adding that the names of new ministers might be announced on December 25.
The Congress veteran was sworn in as Chief Minister on December 17, six days after the Congress pulled a narrow victory over the BJP which ruled the state for 15 years since 2003.
According to the party insiders, one or two Independent MLAs might get a berth in the new Cabinet.
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Four Independent MLAs, who are Congress rebels, have also extended their support, taking the total number of MLAs on the Congress side to 121.
The BJP had finished second by winning 109 seats. Nath has to walk the tightrope while forming the new cabinet as he has to tide over the factionalism in the state Congress unit and also has to take allies and Independents along.
The Madhya Pradesh Congress is divided into camps led by Guna MP Jyotiraditya Scindia, old guard Digvijaya Singh and Suresh Pachouri.
Former chief minister and BJP leader Shivraj Singh Chouhan is tipped to lead his party on the floor of the MP Assembly during its session beginning January 7.