Research fellowships in honour of the late Professor Stephen Hawking will support up to 50 exceptional students.
The fellowships are to be created in mathematics and physics in tribute to renowned British physicist Prof Hawking who died peacefully at his Cambridge home on March 14 at the age of 76.
They will be awarded to exceptional candidates completing their doctoral studies in the fields of maths, physics and the computer sciences, the Department for Business, Energy and Industrial Strategy said.
Financial support will be offered to allow them to continue their work in any UK institution for up to three years.
UK Research and Innovation will award up to 10 "Stephen Hawking fellowships" a year for the next five years.
Prof Hawking's children Robert, Lucy and Tim Hawking said: "Our father knew the value that fellowships could provide to advancing research.
"As a scientist who made extraordinary discoveries throughout his career but particularly in his early years, he was very interested in the development of new talent and devoted much of his career to his teaching roles.
"We are thrilled that these fellowships will be named after him and see this as a great tribute to his life in science."
Science Minister Sam Gyimah said: "I am delighted to announce that, following discussions with the Hawking family, we are creating the Hawking Fellowships in his memory.
"The Fellowships will allow exceptional graduate students in maths, physics and computer science in institutions across the UK to take their work even further.
"I can think of no more fitting tribute to this great man than to support the next generation to push the boundaries of knowledge of the laws that govern our universe."
The ashes of Prof Hawking will be interred at Westminster Abbey between the graves of Sir Isaac Newton and Charles Darwin on June 15.