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"Security clearance (to the appointment of Leslie Thng) has been granted," a top civil aviation ministry official told PTI.
The board of Vistara and the airlines two promoters had named Thng to succeed Yeoh as chief executive from October.
Leslie is set to take charge of the new position next week, an airline official said.
"We have secured all the regulatory approvals, including the mandatory Home Ministry's security clearance, for the appointment of Leslie Thng. He will assume charge as the CEO next week," a Vistara executive said.
The Delhi-based airline is a 51:49 joint venture between Tata Sons and Singapore Airlines.
The incumbent Yeoh has been steering Vistara since the launch of its operations in January 2015.
Thng started his career at Singapore Airlines and has held many senior positions at the airline. Prior to becoming the chief commercial officer at Budget Aviation Holdings, a Singapore Airlines-owned holding company, he was the CEO of SilkAir.
He is coming at the helm of Vistara at a time when it is preparing to fly overseas.
Thng will lead Vistara in its next phase of growth, including international operations, building on the solid foundation and momentum achieved by the airline under the leadership of Yeoh, Vistara had said on his appointment.