Military leaders have raised objections to any invocation of the emergency decree by the government, saying there are no grounds for its enactment.
The decree would require troops to assist police officers in handling anti-government protesters' plan to "shut down" Bangkok from Jan 13.
The military's objection comes despite the pro-government United Front for Democracy against Dictatorship announcing on Thursday it will organise mass rallies in several provinces to counter the anti-government protests.
Observers believed the move signalled the military's reluctance to become directly involved in any possible actions against protesters.
National Security Council (NSC) chief Paradorn Pattanatabut said the armed forces chiefs believed the protest situation did not yet warrant the enforcement of the emergency decree.
The proposal to invoke the decree was floated after anti-government protest leader Suthep Thaugsuban announced mass rallies to shut down Bangkok on Jan 13. He aims to pressure the government to postpone the Feb 2 polls and make way for political reform.
The emergency decree requires the military to assist police in containing emergency situations.
The Internal Security Act (ISA), which gives police extra powers to handle protests, is currently in force across the city to keep peace and order in the wake of the anti-government street rallies which have dragged on for two months and triggered deadly clashes.
Lt Gen Paradorn said the proposal to invoke the emergency decree was brought up at yesterday's meeting of the supreme commander, the leaders of the three armed forces, the defence permanent secretary, the national police chief and himself.
He said the Centre for the Administration of Peace and Order on Wednesday discussed the possibility of introducing the law to handle the rally.
Lt Gen Paradorn said the military suggested that the police forces instead adjust their security arrangements, and offered to lend a hand.
Starting on Friday, military representatives will work with police in mapping out the deployment of its forces and contingency plans, the NSC chief said.
However, he told the meeting that the NSC would propose the enforcement of the emergency decree if the protest situation caused widespread chaos or turned violent.
Lt Gen Paradorn said the prime minister is authorised to declare the emergency decree, but must seek cabinet approval within three days of its enactment. He said the NSC would closely monitor the situation.
A source close to the meeting said army commander Prayuth Chan-ocha was the most vocal opponent of enforcing the emergency decree. The source said Gen Prayuth called on the police to adjust their security management and force deployment plans rather than getting troops involved. The military asked for more time to assess the situation thoroughly and offered to assist police in mapping out their crowd control plans in the meantime, the source said.
The NSC and police pointed out that if the ISA remains in place, the military should take a more active role in maintaining order, the source added.
The Bangkok shutdown plan, confirmed by Mr Suthep on Wednesday night, has sparked fears of a violent confrontation between protesters and those who disagree with them.
In detailing the plan, Mr Suthep warned that the shutdown could be extended for up to 20 days and would involve the occupation of key intersections across the city.
He also hinted that protesters might also gather at the homes of some cabinet ministers. There were threats to cut power and water supplies to the ministers' houses.
A government source speculated the military leaders were opposed to invoking the emergency decree because they did not want to take the heat for becoming involved in the situation.
The source noted the army is already under fire for its role in dispersing red-shirt protesters in 2010, while Mr Suthep also faces a number of criminal charges including murder stemming from the crackdown.
The source believed the military's stance suggested it preferred to play the role of mediator in the current political crisis. However, he believed that if the emergency decree was to be enforced, Supreme Commander Tanasak Patimapragorn would most likely take charge.
Meanwhile, Interior Minister Charupong Ruangsuwan said yesterday he had asked public infrastructure authorities to step up security following protesters' threat to cut water and power supplies to ministers' homes.
He slammed the protest leaders for making such a threat, saying it was a violation of rights.
Mr Charupong said he had also ordered the Bangkok Metropolitan Administration (BMA) to make contingency plans for the Jan 13 shutdown.
The BMA is expected to draw up a traffic management plan and make sure its surveillance cameras are functioning properly, he said.
Red-shirt leader Jatuporn Prompan yesterday said government supporters would also hold a mass rally on Jan 13 to counter the Bangkok shutdown campaign. He declined to offer details of the rally, saying they were "not ready".
His call for a counter rally was welcomed by red shirts in several provinces, including Ayutthaya.