Mr Chalerm said he would make the proposal in his capacity as director of the Centre for Maintaining Peace and Order (CMPO).
The emergency decree was imposed early this year in Bangkok, Nonthaburi and parts of Samut Prakan and Pathum Thani provinces in the wake of the protests by the People's Democratic Reform Committee (PDRC) to demand the resignation of caretaker Prime Minister Yingluck Shinawatra and her government.
Mr Chalerm said he would propose lifting the emergency decree, which is due to expire on March 28, because it was affecting the country's investment and tourism atmosphere.
The Internal Security Act would instead be used to oversee the ongoing political protests, he said.
Mr Chalerm admitted he was concerned the political situation could become more violent in April.
On a plan by seven independent organisations to propose a roadmap for Thailand to find a way out of the political impasse, Mr Chalerm said that although they had shown good intentions, he thought it was not their direct duty to make the proposal.
He believed if the proposal did not adhere to the constitution or called for a neutral prime minister it would not be acceptable.