Prime Minister Narendra Modi reportedly called up Dattatreya and informed him about his induction into the Cabinet during the cabinet expansion, slated for tomorrow.
Celebrations began at Dattatreya's residence here after the news broke out today.
It is, however, not clear whether he will be made a Cabinet Minister or a Minister of State.
The veteran leader, currently BJP's national vice- president, had earlier served as Minister of State in the Atal Bihari Vajpayee Cabinet between 1999 and 2004. He held portfolios of urban development and railways.
He is currently the chairman of OBC MPs Association and has previously served in various parliamentary committees.
Dattatreya is leaving for New Delhi later in the evening.