Chief Minister Pinarayi Vijayan signed the related file tonight and the government order would be issued tomorrow, sources in his office said.
Senkumar told media persons that he would react only after the order has been issued.
Incumbent DGP Loknath Behara is likely to be appointed DGP, Vigilance and Anti-Corruption Bureau.
Senkumar, who is due to retire on June 30, was removed two days after the CPI(M)-led LDF government assumed office on May 25 last year.
The Supreme Court had, however, on Apr 24 directed the reinstatement of Senkumar, saying he was transferred by the LDF government "unfairly" and "arbitrarily".
The Supreme court order was widely seen as a setback to the LDF government.
The Senior IPS officer's relation with ruling CPI-M was not cordial as he had probed various cases, including the sensational T P Chandrasekharan murder case in which CPI(M) cadres were allegedly involved.
The Chief Minister had all along justified Senkumar's removal, saying that he was not fit for the post.
The Supreme Court earlier today dismissed the Kerala government's clarification petition and imposed a cost of Rs 25,000. It also sought the response of Kerala chief secretary Nalini Netto on the contempt plea.
The Kerala government had defended Senkumar's removal, saying he had tried to shield erring policemen in last year's Puttingal temple fire tragedy which left over 100 people dead.
Following the SC's order, the Congress-led UDF and BJP attacked the government, demanding Vijayan's resignation and immediate reinstatement of Senkumar.
The decision on Senkumar's reinstatement followed a meeting of the CPI(M)'s state secretariat earlier in the day where the matter was discussed.
NDA 's Kerala vice chairman and Rajya Sabha MP Rajeev Chandrasekhar said the apex court's verdict was yet another "stinging slap" on the Kerala government.
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