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They also said following the formal announcement of merger, the cabinet may be reshuffled inducting Panneerselvam as the Deputy Chief Minister and some of his faction members.
Governor CV Rao (holding additional charge in Tamil Nadu) is expected to be here for the swearing in.
As per AIADMK party byelaws, the General Secretary cannot be removed by a resolution passed by a committee or group of office bearers.
According to insiders, in order to overcome this hurdle and also to carry out the party affairs, a steering or advisory committee would be formed with representation from the two merging factions.
The decisions of the advisory committee has to be ratified at the general council meeting, said an AIADMK leader.
According to party insiders, one of the moves that is being contemplated is to abolish the post of General Secretary on the pretext that late Chief Minister J. Jayalalithaa will be the party's permanent General Secretary.
This would be done by amending the party byelaws.
But the main question is can the by-law be amended to take away the only power that a primary member enjoys?
As per AIADMK constitution, the party General Secretary is elected directly by the primary members. The party has around 1.5 crore members.
"It is a legal question that has to be deliberated in detail," C. Ponnaian, former Finance Minister and part of Panneerselvam faction told IANS on Sunday.
The Palaniswami faction had declared the appointment of T.T.V. Dinakaran, Sasikala's nephew, as Deputy General Secretary as "improper, unacceptable and invalid". This was challenged by Dinakaran.
Meanwhile following the merger of two factions, the Panneerselvam-Palaniswamy faction may get back the party's popular "two leaves" symbol which has been frozen by the Election Commission.
"As regards party affairs, Panneerselvam will be the number one and Palaniswami number two. In the government, Panneerselvam in most probability will be the Deputy Chief Minister," the leader told IANS on the condition of anonymity.
"There will be couple of ministerial berths for legislators from our group," he added.
The leader also said the government can look into the possibility of reviving the Legislative Council or Upper House of the assembly to accommodate members in the party without showing the door for those now holding posts.
The Upper House in Tamil Nadu was abolished by AIADMK founder and late Chief Minister MG Ramachandran in 1986. Attempts to revive it by a DMK government were cancelled when the AIADMK came back to power.