At a meeting chaired by Prime Minister Narendra Modi, the Cabinet recommended immediate revocation of President's Rule, paving the way for the installation of the new government.
The Cabinet decision came after the Election Commission notified the list of newly-elected members of the 70-member Delhi Assembly.
More From This Section
President's Rule was imposed in Delhi on February 17 last year, after Arvind Kejriwal resigned as chief minister and President Pranab Mukherjee accepted his resignation.
In fresh elections, Kejriwal's Aam Aadmi Party (AAP) staged a historic victory sweeping 67 of the 70 seats and leaving BJP which emerged as the single-largest party last time with only 3 seats.
Kejriwal is set to take oath as chief minister along with his cabinet on February 14 at the historic Ramlila Maidan, the the protest venue of the anti-graft campaigners over three years ago.
This will be his second term as Delhi chief minister, after he resigned last February after running a 49-day government in the national capital with the support of Congress.