"I have been eagerly waiting for something on which I could work with Asif again," Irfan told Variety magazine as the project was unveiled at the Cannes film festival.
Irrfan Khan starred in Kapadia's debut hit The Warrior.
British-born Asif Kapadia is best known for his acclaimed documentaries Senna, about the Formula One legend Ayrton Senna, and Amy, an intimate portrayal of tragic singer Amy Winehouse, which won him an Oscar last year.
Slumdog Millionaire producer Dina Dattani said that given the political tension between India and Pakistan, it is not yet clear where or when the film would start shooting.
"It is too early to decide on location. We will consider both Pakistan and India for the shoot," she added.
Asif Kapadia is currently working on a documentary about football legend Diego Maradona.
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