"Yesterday, I met the Prime Minister and offered to resign. He told me not to take a hasty decision. I have thought over it last night. I have decided that I should resign from the Union Council of Ministers," he told reporters.
He said he has sought an appointment with Prime Minister Manmohan Singh.
Raju, who hails from Seemandhra region, has been strongly opposed to the division of Andhra Pradesh and has been critical of the way the government was going about on the issue.
Meanwhile, there were reports that two Ministers of State -- D Purandeshwari and Killi Kriparani-- have also offered to resign but there was no confirmation.
Last night, Tourism Minister Chiranjeevi and Textiles Minister K S Rao had also offered their resignation.