Sabnis said he had written to Chief Minister Devendra Fadnavis regarding his suggestion.
"By establishing the university in Nagpur or somewhere in Vidarbha, at least the cultural backlog of the region would be removed," he told reporters.
Sabnis said the demand for separate Vidarbha state being raised for years was the manifestation of the perception that injustice was done to the region over the years.
He said the developmental backlog of Vidarbha and other backward regions in the state should be removed on a priority basis.
Sabnis had presided over the Marathi literary summit held at Pimpri-Chinchwad in Pune earlier this year.