Kiran Reddy's aides were Tuesday busy shifting his personal belongings from his office at the secretariat and also from his official residence.
At a meeting with the ministers and legislators loyal to him Sunday, Kiran Reddy had said that he would quit immediately after the Telangana bill was taken up for debate in parliament.
E. Pratap Reddy, one of the state ministers from Seemandhra, said the chief minister would also float a new political party.
The central government had last week tabled the bill in Lok Sabha amid unprecedented ruckus. A MP from Seemandhra used pepper spray and there was also a scuffle between lawmakers from Telangana and Seemandhra.
The incidents led to suspension of 16 MPs by the speaker for the rest of the session.