The Centre on Friday agreed to hold a floor test in the Uttarakhand Assembly under the supervision of the Supreme Court.
Attorney General Mukul Rohatgi told the apex court to appoint an observer and that it should be a retired Chief Election Commissioner
The date of the floor test is to be ascertained by the top court.
Earlier on Wednesday, the Attorney General told the apex court that the government has not been able to form an opinion on the subject and asked for two more days to come up with a decision.
However, the apex court clarified that it would hold a final hearing to dispose of this matter quickly if the Centre says no to the floor test suggestion.
Rohatgi told the media later that the Supreme Court has made it clear that even if the floor test is to take place, it will not mean the restoration of status quo ante.
"Which means the position at the time when the President's rule was imposed won't be restored. Namely of a chief minister and a government, so that position is out," he said.
"The actual modalities will be decided by the court, even in relation to the nine disqualified persons because their petition is pending," he added.
An apex court bench headed by Justice Dipak Misra had on April 27 directed the continuation of President's rule in Uttarakhand.
The Centre had imposed President's rule in the state on March 27.
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