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The online applications for admission to the July session could be submitted until 17 May along with a fee of Rs 1,000
The State industries department has issued an order, handing over the land to the State health department.
The decision was passed on by Bharati Pawar, Union Minister of State for Health and Family Welfare to K Muralidharan, MP.
The state government had recently announced that the AIIMS allotted to Kerala would be set up at Kinassery in Kozhikode district
The 89-year-old was admitted to the hospital on October 13 after feeling weak from a bout of dengue fever.
The AIIMS has 19 centres in different parts of the country. The proposal for launching 22 more is under the consideration of the Centre.
The former prime minister was admitted to the All India Institute of Medical Sciences on Wednesday.
Singh was admitted to the All India Institute of Medical Sciences on Wednesday evening after he complained of weakness following fever.
The Resident Doctors' Associations of the All India Institute of Medical Sciences and Safdarjung Hospital too condemned Ramdev's statement and demanded that 'strictest steps' be taken against him.
Applications for the courses could be submitted online till May 31.