A bench headed by Chief Justice KG Balakrishnan and Justices J M Panchal and B S Chauhan passed the order after hearing the petition filed by Andhra Pradesh government.
The apex court in its order said that the reservation will be available only to Muslims who fall under the 14 categories mentioned in the Andhra Pradesh Reservation Act.
These fourteen categories include washer men, barbers, beggars, scent makers, burial ground people, and butchers.
Meanwhile, Andhra Pradesh Chief Minister K Rosaiah promised that his government would take "all required legal steps" for implementing 4 percent reservation for Muslims.
"With all seriousness and sincerity, we shall take all required legal steps to ensure that the benefit of reservation is extended to Muslims. Our ultimate goal is to protect the reservation for backward class Muslims," Rosaiah said.