Sources in the Sports Ministry, however, informed that an official announcement would follow only after August 20.
Meanwhile, BCCI Chief Administrative Officer Ratnakar Shetty hailed the decision.
"On two occasions, we felt let down when Rahul Dravid didn't get Khel Ratna and Yuvraj (Singh) was denied Arjuna. Dravid was in good form, we had won 16 ODIs on the trot and the team was on a high -- still he did not get the award.
"Yuvraj too was unlucky not to get Arjuna after two years of consistent performance. We are happy Dhoni got it," he told a news channel.
Shetty said what impressed him most about Dhoni was the way he conducted himself.
"What I like most about Mahi, apart from his cricket, is the way he leads. He is a cool customer and never gets agitated. I'm also impressed by his clarity of thought. He speaks his mind even if it may not be seen in the right sense," he added.