"The cabinet has decided to recommend imposition of president's rule in Jharkhand," the source told IANS.
The cabinet took the decision on the recommendation of Governor Syed Ahmed, the source said, adding the governor favoured imposing president's rule while keeping the assembly in suspended animation.
The source said that the cabinet decided to accept the governor's recommendation and refer the matter to the president for approval.
The JMM announced its withdrawal of support to the Munda-led Bharatiya Janata Party-led coalition government Jan 7.