The 3, Motilal Nehru Place type VIII bungalow, spread over 2.5 acres, was vacated by former Delhi Chief Minister Sheila Dikshit recently.
The four-bedroom bungalow with well maintained lawns and office space meets the requirement of a former Prime Minister.
"Some work has to be undertaken at the bungalow before the VIP moves here and CPWD has been given the responsibility for it," said a senior Urban Development Ministry official.
With the allotment of a Lutyen's bungalow, Singh and his wife would be entitled to occupy the house for their lifetime.
Dikshit has moved to a 2,000-sq ft, three-bedroom flat in Silver Arch apartment on Ferozeshah Road in central Delhi after vacating the Motilal Nehru Place bungalow.