A Raj Bhavan press communique issued today - two days after Reddy tendered his resignation - said Governor E S L Narasimhan has accepted it and asked him to continue in office till alternative arrangements are made.
"The Governor, while accepting the resignation with effect from 19-2-2014, requested Nallari Kiran Kumar Reddy, and his colleagues in the Council of Ministers to continue in office till alternative arrangements are made," said the communique.
Reports from Delhi suggested that Andhra Pradesh is heading for a spell of President's Rule with the Governor recommending imposition of central rule.
A section of the AP unit of the Congress is in favour of propping up an interim government, contending that their prospects in Seemandhra are bleak now in view of the party pushing ahead with the formation of Telangana, coupled with the anti-incumbency factor having been in office for ten years.
The term of the Assembly, which began on June 3, 2009, would end on June 2, 2014.
The formation of Telangana state now awaits the formal nod of President with the Bill having been passed in both Houses of Parliament.