TA last month requested the tie be moved to a neutral venue outside India, in the wake of November´s Mumbai terrorist attacks.
But the ITF announced on Saturday that the playoff would go ahead as scheduled in Chennai, from May 8-10, following "a positive report from the ITF´s security consultants."
TA said it will lodge its appeal on Monday and was still hopeful of having the tie moved because the playoff is taking place during the Indian elections, for which security services are already stretched.
TA pointed to cricket´s IPL Twenty20 tournament being shifted from India to South Africa over security concerns.
3rd test: Pujara hits 130 as India trails Australia by 91