The minister appeared satisfied with the new allocation.
"I am satisfied with this portfolio as I had handled it earlier also," Yadav told PTI.
While Hooda told reporters in Shahbad, near Kurukshetra, on the sidelines of a public meeting, "The resignation of Capt Yadav has been rejected."
Yadav, who earlier held the portfolio of power, has now been given Irrigation Department, which he earlier held.
The move to give Yadav the Irrigation portfolio was seen as an attempt to placate him after his open revolt against Hooda.
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The power portfolio has now been given to Finance Minister H S Chattha, who was also handling the Irrigation Department.
Asked if he had withdrawn his resignation, Yadav said that he has convened a meeting of his supporters in Rewari on August 2 and will make any announcement only after meeting them.
He said that a final decision regarding withdrawal of his resignation would be taken only after his consultations with his party workers.
He said that Ahmed also assured him that the points raised by him would be given a serious thought.
Yadav had met Ahmed, who is party in-charge of the state, in Delhi, yesterday. Later, Ahmed said that the six-time Rewari legislator has decided to continue in the Hooda ministry and the issues raised by him will be taken care of.
On Tuesday, Yadav, who among other portfolios also handled the Power Department, had resigned and attacked Hooda for "failing to learn lessons" from the party's Lok Sabha election debacle.