Earlier, the All India Institute of Medical Sciences was planned in Lalganj block of the district, however, the Centre was of the opinion that it should be set up in the main city, an official spokesman said here.
Recently Union Health Minister Ghulam Nabi Azad had met Chief Minister Akhilesh Yadav and requested that instead of Lalganj, land should be provided in the city.
The decision was taken keeping in view problems being faced by the people, the spokesman said.
The chief minister has reiterated that he had already written a letter to Union Health Minister for setting up of AIIMS in Poorvanchal, Bundelkhand and Ruhelkhad regions, besides Rae Bareli.
He said that arrangement of land required for AIIMS would be done on priority.
The plan to establish the hospital was left in lurch during the Mayawati government due to its location as she wanted it in Bundelkhand region.
Congress-led UPA government, however, wanted it in Rae Bareli.