The decision came following a report of Andhra Pradesh governor ESL Narasimhan who apprised the Centre of the prevailing situation in the state.
The move could help the central government gain two more months before approaching Parliament for the mandatory ratification of President's rule in Andhra Pradesh.
Assembly elections in Andhra Pradesh are being held along with the Lok Sabha polls.
Officials sources said since three more phases of polling in the nine-phased Lok Sabha elections are yet to be completed, it is difficult to convene Parliament just for the ratification of the President's rule as most of the MPs are busy in electioneering.
Any proclamation under Article 356 imposing central rule needs to be ratified by Parliament within two months.
Sources pointed to a provision in the Constitution which says "any such Proclamation may be revoked or varied by a subsequent Proclamation".
President's rule was imposed in Andhra Pradesh on March 1 this year after N Kiran Kumar Reddy resigned as CM following Parliament's nod for bifurcation of the state to create Telangana state.