The Hyderabad police had earlier refused permission for the rally, stating that it could cause unrest in the state.
The south Indian state is already witnessing massive protests against the Centre's decision to bifurcate Andhra Pradesh and carve out a separate Telangana state.
In fact on Saturday's rally, Jagan is expected to reiterate the demand for "United Andhra" and repeat his objections to the bifurcation of his home state.
The state high court has allowed his rally to be staged from 2 to 5 pm on the condition that he will not deliver a provocative speech.
This will be the first public meeting by any political party in Hyderabad to oppose the central government's decision to create India's 29th state.
The Telangana issue has divided political leaders from the state as the Congress itself faced a rebellion with several lawmakers and legislators from the state tendering their resignations.
Officially urging the government to take constitutional steps that will see the state's formation, the Congress Working Committee (CWC) last month passed a resolution of declaring Telangana as a state following a meeting of the constituents of the ruling United Progressive Alliance (UPA).
The state, which could is likely to take six months to be formed, is expected to have 10 districts, a population of 35.38 million and an area of 1.14 lakh square km and including Andhra Pradesh capital Hyderabad, which will serve as a common capital for 10 years.
Prime Minister Manmohan Singh supported the formation of the state, saying that it was very much required "for the development of the entire Andhra region".
--IBNS (Posted on 16-10-2013)