The original was a humorous take on Osama Bin Laden and the upcoming film is set post Osama's death.
"The second part of the film could not be made because of the assassination of Osama last year. So, we decided to make a third part which will take the story forward post Osama's death," Sharma told PTI.
"I cannot reveal the story of the sequel now. All I can say is that 'Tere Bin Laden 3' will be one of the most original sequels and will be a super madcap comedy," he added.
A tongue-in-cheek comment on the great American dream, "Tere Bin Laden" was a surprise hit. The film starred Pakistani singer-actor Ali Zafar and Pradhuman Singh in the lead role.
"We have started the pre-production and we will go on floors by the end of this year. We are still in the casting process. Some actors from the old film have been retained and some new characters have also been introduced in this film," Sharma said.
"Both Pradhuman Singh and Ali Zafar will be part of the film. Ali has a special appearance in the film but I can assure you that his fans will not be disappointed," he added.
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The film will be produced by Pooja Shetty Deora and Aarti Shetty from Walkwater Media.
"I am very excited about 'Tere Bin Laden 3', as it reunites a young talented bunch of people and will make us relive the exciting TBL journey," said Pooja. PTI JCH BK