An annual 8,200-pound scholarships will be on offer - enough to cover tuition fees, rent plus any extra books and equipment. Around 100 kids a year are expected to take advantage of the move, the sun.co.uk reported.
The big-hearted gesture - promised by the Tories before the general election - is a thank you for the sacrifice made by a father or mother, the report said.
Universities Minister David Willetts was expected to unveil the plan at the Tory party conference in Birmingham on Tuesday.
The offer is open to children at or near university age who had a parent - soldier, sailor or airman - killed on active duty since 1990.
More than 600 heroes have died in uniform in the last 20 years.
An extra 1.1-million pound will also boost an existing scheme to support ex-service personnel through their studies
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