Tata sons had submitted the final bid for the airline on September 15 and emerged as the frontrunner to acquire the airline.
A panel of ministers led by Union Home Minister Amit Shah accepted the conglomerate's proposal to take over the airline.
As per reports, Tata Sons had submitted the highest bid of Rs 3,000 crore, which is more than the minimum reserve price set by the government committee.
All the formalities for the handover to its new owner will be completed by December, reports stated.
Former Air India director Jitendra Bhargava recently told Bloomberg TV that the Tatas are will get a nod from the government as they have the capability to pour in a large amount of money required to revamp the national carrier.
"Tatas have been very, very passionate about Air India," Bhargava said.