Diana, who made her Bollywood debut with Saif Ali Khan and Deepika Padukone starrer "Cocktail," was last seen in the family entertainer "Happy Bhag Jayegi".
She has teamed up for the first time with Farhan in "Lucknow Central", where she will be playing an NGO worker.
"I have always wanted to be a part of stories that I feel strongly about and 'Lucknow Central' is one such story. I instantly said to it when Nikhil Advani (producer) told me about it," Diana said in a statement.
The movie, produced by Nikhil Advani, marks the directorial debut of Ranjit Tiwari.
"Diana is a talented and versatile actress. She brings with her an element of quiet strength that lends itself well to the character we want her to portray," Advani said.
"Lucknow Central" follows the story of a few jail inmates who rekindle their love for music and form a band in prison with the help of an NGO worker.