The decision was taken at its 243rdsyndicate meeting on Friday with IU Vice-chancellor Professor M Harun-Ur-Rashid Askari in the chair.
The jury board, according to the decision, of the university will select teachers for the medal.
The medal will be given from 2017-18 academic sessions to teachers from each of eight faculties for their outstanding performances in academic activities including teaching, research and advising.
The university has introduced the medal to encourage the teachers, said the VC adding that it will encourage teachers to teach students more attentively in the class.
IU Pro VC Prof M Shahinoor Rahman, Treasurer Professor M Selim Toha, acting registrar SM Abdul Latif, among others, were present at the meeting.