Addressing a press conference along with Khan, State Minister for Culture K C Joseph today said government had zeroed in on the land to be made available to Khan for setting up the school in Thiruvananthapuram or Kochi or Kozhikode.
Once Khan, 69, takes a decision on the location, further process would be taken up, Joseph said.
Khan had expressed his desire to start a music school in 2013, if the state government provided land.
The school would be under the Kerala Sangeetha Nataka Akademi but would have separate body to govern it, he added.
"I am grateful to the Kerala Government for agreeing to my humble request. In my music school, there will be students from all over the world', the great musician said.
Khan also said young musicians in the country should be encouraged on the same line the spokespersons get support at the 'right age'.