Around 2.5 million people die each year from alcohol-related problems, the Daily Express reported.
A monthly injection will almost eliminate cravings, said the team from the University of Chile in Santiago.
The vaccine will be tested on humans at the end of 2013.
In early trials, it has reduced alcohol intake by more than 90 percent.
"The vaccine delivers an instant hangover of epic proportions," said scientist Juan Asenjo.
"If a patient takes one sip of alcohol after the injection, those typical hangover symptoms, such as rapid pulse rate, sweating and nausea, are magnified to the point where the mere idea of another drink is repellent," he said.
