The trade source, who attended the meeting on Friday, confirmed the decision to set up the panel. The source declined to be named because of the sensitivity of the matter.
US President Joe Biden said last week he supported the waiver idea, but the European Union and other developed country opponents said it will not increase output.
"To have solved the unacceptable problem of inequity of access to vaccines, we have to be holistic. It's not one or the other," she said, adding this could not drag out for years.
But that notion has been fiercely opposed by pharmaceutical giants and their host countries, which insist the patents are not the main roadblocks to scaling up production, and warned the move could hamper innovation.
Anxious about China's powerful state-owned enterprises, the United States, European Union and Japan are pushing for curbs on industrial subsidies they say distort the global economy.
Beijing ought to be aware that its policies not only affect rich nations who are are complaining but also developing countries, the WTO head said.