The Syrian regime aims to make a deal with the terrorist Democratic Union Party (PYD) over dividing Syria, it was reported on Sunday.

According to information obtained by Anadolu Agency (AA) from confidential sources, the Assad regime has offered autonomy to the PYD in return for withdrawal of its People's Protection Units (YPG) militia from areas under its control, but the organization has demanded a federated status instead.

It is reported that the Assad regime held talks with the PYD on Sunday in the regime-controlled Qamishli district of Hasakah province in northeastern Syria. Ali Mamlouk, the head of the country's National Security Bureau, represented the Assad regime in the talks. According to the sources, Mamlouk assured the PYD that the Syrian regime would recognize the terrorist organization's authority in the region on the condition that it withdraws from the territory it captured during the Syrian civil war.

The PYD, however, rejected the offer and demanded the country's constitutional system be restructured, the sources said. Although the two sides failed to reach a deal, they agreed to hold further meetings in the future. There was no comment from either the Syrian regime or the PYD on the claim. The reported meeting came as the YPG rapidly advances with U.S. support, gaining more territory. Russia had reportedly mediated between the Syrian regime and the PYD at a lower level. Last month, Syrian Foreign Minister Walid Mualem had announced that Kurdish autonomy in Syria was negotiable.

Meanwhile, the YPG began digging ditches in the village of Jidin, in southeastern Raqqah, where it exchanged fire with Syrian forces. Local sources claimed that the terrorist group is seeking to establish permanent lines for a border with the regime.

Earlier this month, the YPG seized control of Raqqah, the de facto capital of Daesh, from the terrorist group in a U.S.-backed operation. As part of its effort to maintain control of land under its control, the PYD is believed to be preparing to hold a "Federal Election of Constituent Assembly" on Nov. 3. According to AA map measurements, the YPG occupies about a quarter of Syria, most of which is populated by Arabs and Turkmens.

The PYD is the Syrian affiliate of the PKK, a militant group recognized as a terrorist group by the U.S., European Union, Turkey and many other countries. Recognized by the U.S. as an ally in the fight against the Daesh terrorist group, YPG militants operate under the name of the Syrian Democratic Forces (SDF).