A four-year-old student, studying in LKG at Satyabhama English Medium School at Ananparthy, on Wednesday while urgently wanting to go to the toilet, urinated in a plastic bottle in the class.
On noticing the incident, the teacher, Gouri, asked the student drink the urine, the police said.
The boy later informed the matter to his parents.
On Thursday morning, the child's parents went to the Ananparthy police station and registered a case following which the matter was referred to the District Education Officer (DEO).
The DEO asked the head of the school to conduct an inquiry into the incident and take stringent action against the teacher.