Mr Sidhu had resigned from the post on 28 September, triggering a new crisis in the state's Congress unit ahead of the assembly elections.
However, the next day, he said his concerns have been addressed, and he would resume his duties when a new Advocate General is appointed.
"At the start, I want to say that Rahul Gandhi and Priyanka Gandhi's soldier has taken back his resignation... I have taken back my resignation. And I categorically state that the day a new Advocate General is appointed, I will assume charge," Mr Sidhu told a press conference on 5 November.
The party chief had posted his resignation on Twitter last month, making his displeasure apparent at the appointments and cabinet reshuffle under the new chief minister, Charanjit Singh Channi.
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