Gavaskar would be made "interim working president" of the Board of Control for Cricket in India (BCCI), the court said, adding that the appointment would place him in overall charge of the upcoming edition of the annual Indian Premier League.
As interim president of BCCI, Gavaskar will exercise all powers concerning IPL.
An apex court bench headed by Justice AK Patnaik said Gavaskar would only be concerned with matters related to the seventh edition of the Indian Premier League (IPL). All other BCCI duties will be handled by former test cricketer Shivlal Yadav, a senior vice president of the BCCI.
The apex court also allowed Chennai Super Kings and Rajasthan Royals, the two teams at the centre of investigations into illegal betting and spot-fixing, to play during IPL season 7 and the IPL matches will go on as per schedule.
Gavaskar will decide whether Sundar Raman, CEO of IPL, shall continue or some other person has to be engaged, the Supreme Court said.
The SC on Tuesday had told Srinivasan to step down as the BCCI chief to enable free and fair probe in the betting and spot-fixing scandal involving his son-in-law Gurunath Meiyappan and some cricketers.
The court did not penalize any teams or players as part of the judgment.
"This judgment is for cricket lovers, we do not want to suspend any team or player before the IPL," Justice A.K. Patnaik said.
The court will reconvene on April 16 to hear the matter further, the court said.
Srinivasan's position on the BCCI has been considered untenable since a three-member committee, headed by Justice Mukul Mudgal, found Chennai Super Kings team principal Meiyappan guilty of being in contact with illegal bookmakers in its report forwarded to the Supreme Court. Meiyappan spent two weeks in jail last year before being granted bail.