The government is likely to seek legal remedy on the Supreme Court judgement that halted the divestment of HPCL and BPCL.
Its options also include a review of the judgement.
The government fears that the verdict of the apex court could lead to court battles in many more privatisation cases.
The divestment ministry will also prepare a paper specifying various alternatives, including a review, for the consideration of the Cabinet Committee on Divestment.
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"Jaitley and I discussed features of the judgement and its consequences and considered several options. In divestment we will prepare a paper and submit it to Jaitley on Friday," Shourie said after emerging from the meeting, which lasted over half an hour.
One of the options the government is believed to be considering is a review of the judgement by a constitution bench.
"We are looking at all options. When we decide on something, we will tell you," Law Minister Arun Jaitley said.
Both Jaitley and Shourie said foreign investors had become apprehensive about India's reform process, particularly the government's privatisation drive, in the wake of the Supreme Court judgement.
Within a week of the judgement, the Madras high court asked the Centre to hold the final divestment of Madras Fertilisers till a decision was taken on a petition challenging the PSU's privatisation.
The Supreme Court halted the divestment of the Hindustan Petroleum Corporation Ltd and the Bharat Petroleum Corporation Ltd and asked the central government to get approval from the Parliament before going ahead with the selloffs.
The court had said that the government, through an executive order, could not override a parliamentary legislation that created HPCL and BPCL in 1974 after acquiring the assets of Esso and Burmah Shell.
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