The cabinet on Tuesday will consider a plan to hold a national referendum on amending the constitution before third reading of the charter change bill is held in Parliament.
The coalition's working panel on charter change had already forwarded the resolution to Ampon Kittiampon, the cabinet secretary-general, Pheu Thai Party leader Charupong Ruangsuwan said on Saturday.
The resolution would be put on the agenda of the cabinet on Tuesday, added Mr Charupong, who is also the interior minister.
Once the cabinet approves the referendum proposal, it would be forwarded to parliament and then to the Election Commission.
The government earlier had planned to hold a debate on amending Section 291 of the 2007 constitution, which relates to creating a charter drafting assembly, during the new parliamentary session that begins this coming Friday.
However, concern has grown that such a move would be highly divisive. Even former premier Thaksin Shinawatra, who plays a major role in setting Pheu Thai policy, has suggested that the party take a step back.
It is expected that the Election Commission would set a referendum date sometime between March 12 and April 12, said Mr Charupong.
The current parliamentary session is scheduled to end in April and Pheu Thai strategists hope to complete third reading of the resolution on Section 291 before that time if the referendum passes.
The Pheu Thai leader expressed confidence that at least 23 million eligible voters, more than 50% as required by the charter, would turn out and vote in support of the constitutional amendment plan on that day.
He also insisted that there would be no alteration in Article 165, which stipulates conditions for holding referendums, because the power of making decisions belonged to the people in line with the democratic system.
Prime Minister Yingluck Shinawatra, speaking on her weekly TV programme on Saturday, said that amending the constitution would help create solutions for the country to move forward and bring peace.
Recalling the happiness people displayed on His Majesty the King's birthday on Dec 5, she said her government would take to heart His Majesty's recommendations in its work.
Ms Yingluck said that while the charter amendment process would have to go through Parliament, the government wanted to have people's participation to ensure peace in the country. Therefore, the Interior and Justice ministries had been assigned to study ways to ensure participation through public hearings and a referendum.
She said the government was willing to accept public opinion regardless of the direction.
The government, she said, had no urgent timeframe for the charter amendment as organising a referendum would take time.
Only after public opinion has been heard, she said, would there be a vote on whether to amend Section 291.