The beleaguered leader, who unsuccessfully fought for the two-leaves symbol with the Election Commission, said he has decided to contest the by-poll in deference to the views of senior leaders.
All out efforts will be taken to retrieve the two-leaves symbol, Mr Dhinakaran told reporters at nearby Tirupur.
He said that he would meet party general secretary VK Sasikala on November 29 in jail in Bengaluru.
Earlier, addressing cadres at a zonal party meet near Tirupur, he accused both Chief Minister K Palaniswami and his deputy O Paneerselvam for being "hand in glove with the BJP," and alleged they conspired to get the two leaves symbol.
"It is not a coincidence that the symbol is allotted to them just 24 hours before the announcement of the date for the by-elections to RK Nagar," he said.
Stating that the people wanted to "throw out" the government, he said it was necessary to send home the incumbent regime for the welfare of the people and the state.
Former minister Senthil Balaji demanded to know whether Mr Palanisamy 'has the guts' to quit as Chief Minister and prove his majority on the floor of the House.
Mr Dhinakaran had filed his nomination for the bypoll in RK Nagar when it was previously scheduled for April 12 this year.
However, the bypoll was cancelled subsequently following allegations of bribing of voters.
Yesterday, Mr Dhinakaran said that his faction would move the Supreme Court against the Election Commission's ruling allotting the two-leaves symbol to the unified AIADMK led by Chief Minister K Palaniswami and his deputy O Panneerselvam.
Mr Dhinakaran, whose appointment as deputy general secretary was annulled by the unified AIADMK, had alleged that the EC acted in a partisan manner and according to the Centre's wish while deciding the row over two-leaves party symbol.
The Election Commission earlier today announced that the bypoll to the RK Nagar Assembly constituency here, which fell vacant following the demise of former Tamil Nadu Chief Minister J Jayalalithaa last year, will be held on December 21.