The incident came to light after a woman resident of the rented house went to the terrace this morning to dry clothes, a senior official said.
The woman's son-in-law Rajasekhar is a cab driver.
"They alerted the police immediately. It is still not clear how old the baby is, whether two months or three-months, and also if it is a boy or a girl," DCP (Malkajgiri Zone) Ch R Umamaheswara Sarma told PTI.
He said the head has been sent for postmortem.
On January 29, the severed head of a 25-year-old man was found placed on the compound wall of a religious place in Nalgonda town of Telangana.
On January 30, chopped body parts of an unidentified pregnant woman were found stuffed in two gunny bags near the Botanical garden at Kondapur near Hitech City here.