As Andhra Pradesh is set to be bifurcated, Congress, which has been ruling the state for last 10 years, is unlikely to chose another candidate to succeed Reddy, who quit as an MLA as well as from the party protesting against the decision to create Telangana.
Sources said since the assembly elections will be held in the successor states of Andhra Pradesh and Telangana along with Lok Sabha polls, the central government is likely to accept the recommendation of the governor by imposing President's rule.
A decision on imposition of central rule in Andhra Pradesh is expected to be taken in the next meeting of the Union Cabinet, which will recommend to the President.
The bill to create the country's 29th state, by splitting Andhra Pradesh, was passed by the Lok Sabha on Tuesday. It was moved in the Rajya Sabha today.
A number of ruling Congress MLAs from coastal Andhra and Rayalaseema have announced resignation from their posts and also from the party over the issue of division.