According to reports, the Kadapa MP is likely to be arrested three days before he is to appear in the CBI court on May 28.
The imposition of section 144 (Criminal Code procedure) will be effective from May 24 to May 29.
Anurag Sharma, Hyderabad City Commissioner Police, who imposed section 144 said that no rallies, processions or meeting would be allowed to be held during the imposition of orders.
Police have also started security checks at the entry point of the city.
"In view of forthcoming by-elections certain political parties are likely to organise large number of supporters in Hyderabad city limits, taking advantage of some local events to derive political advantage," said the commissioner.
Meanwhile, Jaganmohan Reddy alleged that a conspiracy was hatched against him by Congress government, the TDP and CBI.
He also sent a letter to Prime Minister Manmohan Singh expressing his concern that a conspiracy to trigger riots following his arrest was planned and he feared that the blame would be put on him.
The CBI had earlier issued summons to Jagan directing him to appear before it on May 28.