Veer Savarkar, the controversial freedom fighter and strong advocate of the Hindutva ideology, spent nearly 30 years of his life in a large house in Shivaji Park.
The state government has now decided to give the bungalow heritage status.
The Brihanmumbai Municipal Corporation's (BMC) heritage committee had in February 2009 recommended that the structure, located on Madhukar Raut Marg in Shivaji Park, be included in Mumbai's heritage list.
Now, the committee has now put forward its recommendation before the municipal commissioner as well as the state's urban development department.
Savarkar Sadan, as the building is called, will be included in the heritage list as a Grade IIA structure. Savarkar, who was born near Nashik in 1883, built the three-storey bungalow using money given to him by his admirers.
Savarkar moved to Mumbai and was elected president of the political party Hindu Mahasabha in 1937, and lived in Shivaji Park from then on until 1966 when he died.
"After the recommendation was made, the BMC invited suggestions and objections from citizens. As no objections were received within the stipulated time, we have recommended the structure to be included in the heritage list," a senior civic official said.
"The structure has been built in vernacular style and will be declared of heritage value for its historical importance in India's freedom struggle and not for its architectural importance," another civic official said, requesting anonymity.
Ashok Shintre, director, engineering services and projects, BMC, said: "The state had asked for a formal proposal, which is ready. I am not sure whether the file has been sent to the government."
Atul Bhatkhalkar, BJP's Maharashtra spokesperson, said: "It should have been done earlier. We welcome the move."