"The ordinance was passed by the cabinet based on the decision of the all-party meeting and now the cabinet will meet to take a final call," he said.
Rahul Gandhi earlier rubbished the ordinance, saying that it was "complete nonsense" and should be "torn up and thrown away".
The remark created a political storm, with the BJP demanding that the prime minister should step down.
Manmohan Singh said Tuesday he would not quit over the perceived undermining of his authority and that of his cabinet by Rahul Gandhi.