Melaye had reportedly suffered a spinal cord injury when he allegedly jumped out of a moving police vehicle.
Melaye was reportedly moved back to the Hospital on Friday shortly after the ruling.
The senator is reportedly being treated for spinal cord injury which he allegedly suffered when he jumped out of a moving police van while attempting to evade arrest.
A Senior Magistrate Court in Lokoja had denied Melaye bail and ordered he be remanded in police custody.
But the State Chief Judge, Justice Nasir Ajanah gave an interim order in his ruling on two motions filed by the prosecution and the defendant challenging the May 3 Magistrate court's ruling.
The prosecution, led by Theophilus Oteme Esq, the officer in charge of legal unit, Kogi police command, in its motion sought that the lower court ruling be varied and the defendant be remanded in prison custody as originally sought.
The other motion filed by defence, led by Chief Mike Ozekhome (SAN), applied for the granting of bail to the Senator and as well urged the court to order that he (Melaye) be remanded at the National Hospital, Abuja in view his health challenges.
Arguing the motion Ozekhome prayed the court, to in the interest of justice, abridge the time both motions would be taken because of the critical health condition of the defendant applicant.
"He was taken to the lower court yesterday on a stretcher and as we speak, he is still on the stretcher,"he said.
Ozekhome said that the life of the applicant is in danger since the police in the state has no medical facility to take care of him while in their custody.
The Chief Judge, in his ruling on the applications, said that while both parties were on the same page in their call for variation their destinations on the issue of bail were different.
Ajanah said he was inclined to grant the prayers of the two parties in which they sought variation of the court order on the custody of the senator.
He, however, conceded that it was only a fit person that could stand trial, saying, "infact, that is why it is called, Standing Trial.
"In the circumstance therefore, I hereby vary the order of the remand of the third defendant as made by the lead counsel.
"I hereby order that the third defendant be kept at the National Hospital, Abuja under the custody and close watch and supervision of the complainant, the Inspector General of Police.
"The application for the bail in this case will be heard on Monday, the 7th of May, 2018", Ajanah declared.
Last Thursday, Melaye was remanded into police custody until June 11, by Mr Sulyman Abdullah of the Lokoja Senior Magistrate Court.
The senator was arraigned along with Kabiru Seidu, aka Osama, and Nuhu Salihu, aka Small.
They were charged with criminal conspiracy, illegal possession of firearms and illegal gun dealing contrary to various sections of the appropriate laws.