Delhi: Lawyers for hit-run driver Puneet Puneet say their offer to Victoria's Attorney-General that he will return to Australia from India if prosecutors guarantee a maximum two-year sentence is being "discussed".

While saying they had not received any official response from Acting Attorney-General Gavin Jennings or the Canberra government, lawyer Kanhaiya Kumar Singhal said they knew their offer was the subject of meetings.

Puneet Puneet after being bailed from the Melbourne Magistrates Court in October 2008. Credit:Angela Wylie

"It will take a matter of time, but we know there are discussions in Australia", Mr Singhal told reporters outside a Delhi court on Monday.

Asked whether that could mean the extradition request might be dropped, he said: "Not dropped as that would technically be grounds for surrender. But opposing parties could well sit down and negotiate."