Mukherjee gave his nod to place under suspended animation the Andhra Pradesh Assembly whose term is slated to end on June two.
The decision to impose the President's Rule in Andhra Pradesh was necessitated by N Kiran Kumar Reddy's resignation as the Chief Minister on February 19 as he was opposed to division of the state to carve out Telangana.
Governor E S L Narasimhan had recommended central rule in the state after the resignation.
The bill to create Telangana by splitting Andhra Pradesh was passed by Parliament on February 20 in the just-concluded Winter Session.