The post is lying vacant after the tenure of Vilas Patil ended eight months ago.
The recommendation has been sent to the Governor.
Gaikwad, who retired as Chief Secretary on May 31, was among the seven probables whose names were discussed by the panel of Chief Minister Prithviraj Chavan, Deputy Chief Minister Ajit Pawar and Leader of Opposition in the Legislative Assembly Eknath Khadse.
Panel also discussed the names of former Additional Secretary (Home) U C Sarangi, former Mumbai civic chief Subodh Kumar, former bureaucrat Ramesh Kumar and current Regional Information Commissioner Bhaskar Patil among others, sources said.