The government had celebrated late Congress stalwart's birth anniversary last year too, soon after formation of the new state.
Rao was born in Karimnagar district, which is now in Telangana, on June 28, 1921.
The official function would be held at 'P V Gyan Bhoomi' on the banks of Hussain Sagar Lake, a government release said.
Recalling Rao's contribution to the country, Chief Minister K Chandrasekar Rao said it was a matter of pride for Telangana that the former Prime Minister was a son of the soil.
Telangana and Andhra Pradesh units of Congress too would jointly organise a function here tomorrow to mark Rao's birth anniversary. Rao, in his long political career, had been the Congress president too.
AICC general secretary Digvijay Singh, in-charge of Congress affairs in Telangana and AP, would attend the function organised by the party.