According to Global Times, Tianjin University developed the kit in collaboration with Beijing Biotech company. The kit is undergoing clinical trials and will be sent to the health regulator for approval.
Earlier, the National Medical Products Administration (NMPA), Chinese health regulatory body, approved a kit developed by SunSure Biotech, which cut the screening time to 30 minutes.
The NMPA approved four test kits on January 26.
The coronavirus epidemic has claimed over 800 lives and infected more than 37,000 people in China.
During the 2003 SARS outbreak, more than 750 people had died and 8,437 were infected across the world. SARS had spread from China's southern province of Guanzhou, while the coronavirus has stemmed from the Wuhan seafood market in the eastern central province of Hubei.
The disease has spread to around 20 countries. Around 99 per cent patients are in China. On Saturday, two foreign nationals -- an American and a Japanese -- died of the disease.