Telugu film star-turned-politician Chiranjeevi's [Images] camp on Friday heaved a sigh of relief with lawyer Chenna Krishnaiah agreeing to withdraw his application from the Election Commission seeking the registration of Praja Rajyam Party in his name.

According to the reports reaching Hyderabad from Delhi [Images], Krishnaiah, who hails from Kadapa was successfully persuaded by a group of Chiranjeevi associates, including Dr P Vinay to withdraw in favour of the star.

Chiranjeevi had announced his party's name as Praja Rajyam at a mammoth rally of his fans in Tirupati on Tuesday. But before Election Commission could be approached by him for formal registration of his party in that name, Krishnaiah had applied for the registration of the same name.

As the news about this development spread on Thursday evening, Chiranjeevi camp plunged into confusion with his aides exploring various options to overcome this problem.

According to the sources in Chiranjeevi camp, the crisis has now blown over. "Chenna Krishnaiah has agreed to withdraw his application and has signed a letter addressed to the chief election commissioner to this effect," a senior figure in Chiranjeevi camp said.

"Legally our position was strong because we had filed all the legal and supporting documents for the registration of the party while the other side had applied on a plain paper without any documents. But not taking any chances we talked to him and persuaded him to withdraw," he said.