The decision was taken at the cabinet meeting chaired by Uttar Pradesh Chief Minister Akhilesh Yadav.
The UP CM would be ex-officio Chancellor of the University.
The UP Rural Medical Sciences and Research Institute would be the state's second medical university after King George Medical University here.
The cabinet approved the draft of the UP Medical Sciences University Act 2015.
The University would have powers to give affiliation to private medical and dental colleges, besides paramedical institutes.