The director-actor duo will start working on the project next year after Shahid wraps up Shree Narayan Singh's "Batti Gull Meter Chalu".
Earlier, there had been rumours about the two teaming up again, which further intensified when the director said he had approached the actor with a script.
Asked how excited he is to reunite with Imtiaz, Shahid said, "We are going to do something soon together and I am really excited. I think Imtiaz is a phenomenally talented filmmaker. We made a film together towards the beginning of both our careers and it's something people still talk about."
The actor was speaking at the Zee Cine Awards last night here.
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Shahid said the film's subject is different from what they have done in the past.
"It is very exciting and interesting," he added.
Shahid will start working on "Batti Gull..." in February 2018. The film has been in the news over the casting of its female lead.
As per earlier reports, actor Katrina Kaif had been approached for the role. But if recent speculations are to believed, "Befikre" actor Vaani Kapoor may be seen romancing Shahid in the film.
The female lead of the film is expected to be announced in a week or two, he added.
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