The film, a remake of South film Ramana, will be co-produced by Sanjay Leela Bhansali and Shabina Khan. Southern film director M Raja is slated to helm the Hindi version.
Akshay and Katrina were last seen on screen in 2010 movie Tees Maar Khan that turned out to be a total box office disaster.
"Akshay and Katrina have been probably the most popular hit pair in recent times with blockbusters like Singh is Kinng, Namaste London and Welcome, amongst others. Interestingly, in spite of them doing back-to-back films, they were hardly linked with each other romantically," said a source.
However, after the lukewarm response to De Dana Dhan and Tees Maar Khan, they decided to take a break. Akshay moved on with Sonakshi Sinha as his new lucky mascot.
The source added: "The initial talks are already done and the project is expected to go on floors by the end of the year. Shabina and Akshay were keen that the film should have Katrina once again as their fans would love to see them getting back together on the big screen."
Katrina and Shabina remained unavailable for comment. Directed by AR Murugadoss, Ramana is a 2002 Tamil action film. The blockbuster featured Vijaykanth and Simran. It was later remade in Telugu as Tagore with Chiranjeevi in the lead and then also in Kannada as Vishnu Sena with Vishnuvardhan in the lead role.