Pal had issued the order appointing Meena following Jung's directives.
Sources said the LG has declared "null and void" the order transferring Pal. Earlier, government sources said the order was sent to Jung for approval.
The conflict over authority over the bureaucracy has been a major source of confrontation between the AAP government and the LG.
Jung had yesterday appointed Meena superseding Chief Minister Arvind Kejriwal's hand-picked chief SS Yadav. The AAP government had reacted sharply to the decision.
Meena is currently serving as Joint Commissioner of New Delhi range and the LG's order said he has been given additional charge of ACB.