The Kerala government has offered all support to the institute planned to set up in Thiruvananthapuram, Khan said.
He made the annoucement while delivering the keynote address on the occasion of the presentation of the prestigious 'Swathi Sangeetha Puraskaram' to veteran carnatic vocalist and composer V Dakshinamoorthy here.
"I always feel like home in Kerala since my very first arrival in the state. I discussed with Chief Minister Oommen Chandy about the proposed music institute and students. There will be some Sarod players in Kerala," he said.
The maestro is also participating in the four-day Swathi Dance and Music Festival commencing today.
Hailing Dakshinamoorthy for his decades long composing career, Khan said meeting such legends itself was a great honour. The veteran musician, who composed thousands of songs, was still going strong at the age of 94, Khan added.
Speaking after presenting the award to Dakshinamoorthy, Chandy said the state government would render all support for Khan's music institute which would attract music lovers across the country.
'Swathi Sangeetha Puraskaram', which carries a cash prize of one lakh and citation, is the highest award instituted by the state to honour musicians.
The award is instituted in the memory of 19th century composer-king Swathi Thirunal of erstwhile princely state of Travancore.