Regulators say there is no evidence that the milk poses a danger or that a live virus is present
Mohammad Nasim on Thursday at an award giving ceremony said the decision would be announced formally once the process was completed.
Bangladesh so far has only one medical university, Bangabandhu Sheikh Mujib Medical University (BSMMU) in capital Dhaka.
The prime minister made a public announcement last year to upgrade Bangladesh's oldest medical college, Dhaka Medical College, to a university.
But the decision has been shelved following protest.
The pro-government doctors have been demanding more medical universities for quite some time in different forums.
The previous Hasina administration established the BSMMU in 1998.
Analysts on medical education, however, say the university has now become an epicentre of doctors' politics.