Banda told journalists in the capital Lilongwe that the decision to form an electoral alliance with the MCP was taken following the realisation that her party alone could not unseat the governing Democratic Progressing Party (DPP) during the elections set for May 21.
"As a party, we thought that forming an alliance will be an easy winning formula in this year's watershed elections," she said.
The People’s Party is expected to bring in one million votes to the alliance with the MCP, which has the majority of its supporters in the central region of the country.
This is a second alliance signed by Banda’s party, which last month also entered into an alliance with Vice President Saulos Chilima's United Transformation.
She however later withdrew due to disagreements over positions.