Tthe land ministry has contended that a failure to re-issue the ordinance will make it difficult to pay compensation to farmers.
The Union ministry of land resources had pitched for a fresh ordinance or executive order on land acquisition, sources told NDTV.
Sources said the plan is to pass the ordinance once the House is discontinued. The cabinet secretariat and the Prime Minister's Office have already been informed. But a final call on the issue will be taken by early next week.
The government had planned to let the land ordinance lapse in due time since it has been decided to drop the contentious clauses in the amended bill following a report by a joint committee of Parliament. It paved the way for a virtual return to the earlier law passed by the erstwhile UPA government.
But the land ministry has contended that a failure to re-issue the ordinance will make it difficult to pay compensation to farmers since there will be two rates for this.
The new land acquisition law makes it mandatory for states to pay at least four times the market rate of the land being acquired. The Centre, however, will still be able to acquire the same land at the market rate or at a slightly higher rate.
In case a fresh ordinance is brought into effect, the government plans to drop the contentious clauses of social impact assessment and the consent clause for land sale in it.
There are still two key points in the ordinance on which there is no consensus -- the retrospective clause allowing a return of land to farmers in case they have not received compensation and a specified period for this.
Earlier this month, following the recommendations of the joint committee, the government had withdrawn the amended land bill which had seen vociferous protests by the opposition.
The amended bill - intended to develop infrastructure and kick-start stalled industrial projects -- had cleared the Lok Sabha in March, where the government has a huge majority. But it was stalled in the Rajya Sabha or Upper House, where it is in a minority. Even some of the NDA allies had expressed their reservations about the bill.
It will now be up to individual states to pass their own laws for business-friendly land reforms.