The two had remained adamant on their resignations even after 18 of their colleagues withdrew their resignations after the Centre called an all-party meeting on the contentious Telangana issue on January 5.
However, following a fresh directive from the Congress high command, Venkat Reddy and Sridhar Babu relented on Tuesday.
Andhra Pradesh Congress Committee President D Srinivas prevailed upon them to withdraw their resignation in line with the high command's directive.
Accordingly, the two announced their decision to take back the resignations and fight for achieving statehood to Telangana while "staying in power".
"We have confidence in the Centre and hope it will go ahead with the process of formation of Telangana in tune with its December 9 announcement," they said.