Prime Minister Prayut Chan-o-cha will use article 44 of the interim constitution, which grants him the power to issue any order or enact any rules that would "strengthen public unity and harmony."
"The premier agreed to use his powers and stressed that we move quickly because these (racers) damage public good," Justice Minister General Paiboon Koomchaya , who requested the use of the executive powers, told reporters.
Rights groups have criticised the use of article 44, calling it "dictatorial."
Prayut has said that he would only use his powers for "important matters" related to national security.
Over 350 motorbike racers were arrested last month in one race at night on a Bangkok road.
Police found illegally modified motorbikes, gambling and drug use prevalent among those detained.