However, the central rule will continue in the residual Andhra Pradesh till TDP chief N Chandrababu Naidu takes charge as Chief Minister a week later.
A notification is expected to be issued tomorrow morning revoking President's rule in Telangana to facilitate Rao in taking charge as the first Chief Minister of the country's 29th state.
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The notification will clarify that the President's rule will continue in residuary Andhra Pradesh till Naidu takes oath as Chief Minister possibly on June 8, official sources said.
President's rule was imposed in Andhra Pradesh on March 1 after N Kiran Kumar Reddy resigned as Chief Minister following Parliament's nod for bifurcation of the state to create separate Telangana.
Rao's party Telangana Rashtra Samiti won 63 of the 119 assembly seats in Telangana in the recent elections while Nadu's Telugu Desam Party, along with ally BJP, bagged 106 of the 175 assembly seats in Seemandhra.
Sources said that before Rao is sworn-in as Chief Minister, Andhra Pradesh Governor E S L Narasimhan, who was given the additional charge of the proposed state of Telangana, will himself have to take oath.
Hectic work is on in the Union Home Ministry and in Andhra Pradesh government for smooth division of the state on June 2, the appointed day, official sources said.