Construction would cost $800m, with $200m for an "endowment fund for research and innovation," Higher Education Minister Jonathan Moyo said at a press conference, Reuters news agency reports.
"There can be no better recognition of President Mugabe's commitment to education and his exemplary leadership," Mr Moyo added.
The cabinet approved the money for the Robert Gabriel Mugabe University to be built in Mazowe, north of the capital Harare, the state-owned Herald newspaper reported.
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