The premier said she has already endorsed the appeal as advised by a newly set-up working panel.
The government's reaction came after the Central Administrative Court ruled in favour of Thawil Pliensri who petitioned against what he called his unfair transfer from the National Security Council (NSC) to become an advisor to the prime minister.
The Court ruled that the resolution of the Civil Service Commission for Merit Systems Protection action dismissing Mr Thawil’s complaint was void.
It also revoked the Prime Minister's transfer order dated September 7, 2011, and ordered the reinstatement of Mr Thawil to his former post as NSC chief as soon as possible.
Permanent-Secretary for Prime Minister's Office Tongthong Chandransu said a panel has been set up to study the case to see whether the government should appeal the Administrative Court's ruling or not.
The panel, chaired by the PM's secretary general Suranand Vejjajiva, consists of the permanent-secretary for the Prime Minister's Office, the secretary-general for the Council of State and the secretary-general of the Civil Service Commission.
Mr Tongthong said the panel agreed to appeal the lower court ruling provided that it does not affect the country's administration and the state officials' reshuffle system.
He explained that Mr Thawil was transferred from the NSC to become the premier's advisor which is considered as the same level of position.
If the government does not appeal, he said, it will set a precedent for other cases and that the government would not be able to reshuffle state officials.
Mr Tongthong said the Attorney General could appeal the case by June 30.