Erdogan, who took the presidency in August elections after over a decade as premier, will chair the cabinet meeting from 11:00 am local time at his own hugely disputed presidential palace on the outskirts of Ankara.
The Turkish president has the right under the constitution to chair cabinet meetings, which are usually overseen by Prime Minister Ahmet Davutoglu.
However Erdogan's two predecessors in the presidential job -- Ahmet Necdet Sezer and Abdullah Gul -- performed largely ceremonial roles and never chaired a government meeting.
Erdogan transformed Turkey in over a decade as prime minister from 2003 to 2014, winning plaudits for speeding up development and growth but also facing accusations of imposing a creeping Islamisation and authoritarianism on the country's secular democracy.
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The August elections were the first time a Turkish president has been directly elected by the people and Erdogan insisted he now has a popular mandate to be an active and powerful leader.
But in barely half a year in office, Erdogan has transformed the role, making clear that the president is Turkey's number one on all the major issues, including foreign policy.
However the opposition had accused Erdogan of acting increasingly like an autocrat, building up his own "shadow cabinet" in the presidency with powers to rival those of ministers.
Today's meeting comes at the start of a key year for Turkey which will in June vote in legislative elections where the ruling Justice and Development Party (AKP) is seeking a big majority to write a new constitution that will enshrine Erdogan's powers as president.