Rao, 60, will be demitting office July 31 at the end of her two-year term. The government has decided to appoint Rao as the next envoy in Washington, the sources said.Rao will replace Meera Shankar, who has held the post since 2009.
During Rao's term, the cabinet had amended its rules to ensure that any foreign secretary should serve for a period of two years. She had been given a seven-month extension in December.
An announcement of her new posting is expected from the government soon, along with that of the next foreign secretary.
Published 22 June 2011, 14:25 IST