Sujoy said the film will go on floors soon and will be majorly shot in the city.
"Yes 'Kahaani 2' is happening. It is in pre-production stage. Vidya Balan will star in the film. Major parts of the film will be shot in Kolkata," the director told PTI.
Sujoy has produced Vidya's upcoming film "T3EN" directed by Ribhu Dasgupta. The film also stars Amitabh Bachchan and Nawazuddin Siddiqui.
During a discussion on 'Byomkesh Through The Ages' at the 40th International Kolkata Book Fair last night, the director, said he personally liked Byomkesh Bakshi but was not sure if it would be fit enough for today's pan-Indian film goers.
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He said he took up the challenge to play Byomkesh Bakshi only at the behest of its late director Rituparno Ghosh.
"Rituda had ordered me one day that 'you have to do the lead role in my Satyanweshi'. It was not possible for me to say no to Rituparno Ghosh. It was an altogether good experience. Except Byomkesh and his assistant Ajit, all other characters were created by Ritu da."
The director said he loves coming to book fair. "There is a certain vibe of positivity in Kolkata. I feel that buzz again in Kolkata Book Fair where I have come after many years. This reminds me of childhood days when the (book) fair took place at the Maidan," he said.