"We have identified a two-acre plot in Aurangabad," he told reporters at the state secretariat.
Munde, who was the Union Rural Development Minister, died following a road mishap in Delhi in June last year.
"Work on the memorial is expected to begin in a few months," Khadse said, adding it is likely to include an amphitheatre and a garden.
Munde's daughter Pankaja is Rural Development Minister in the Devendra Fadnavis government while another daughter Preetam is Lok Sabha member from Beed.
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