The 38-year-old South actor, who will be working with a Bollywood star for the first time, said Shraddha is the "best choice" for the role.
"I have never worked with a Bollywood actor before and she is the best choice for the role. We are very lucky to have her on board. Her character is not just like coming and going or just there for the songs.
"The character is very important and adds a lot of weight to the story. It is one of the most important characters in the film. She has some amazing action sequences also. It is a very strong character," Prabhas told PTI.
"Shraddha is a very hard-working actor and she is very comfortable (on the sets). Most of the actresses I have worked with have started their career in South and then shifted to Bollywood. Shraddha is already a Bollywood star, but she is very dedicated," he said.
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Shraddha, 30, today started shooting for some of the action sequences for the film in Hyderabad. Prabhas, who is currently in Los Angeles, will be joining her around January 5 for a month-long schedule.
A UV Creations production, "Saaho" is produced by Vamsi and Pramod. Directed by Sujeeth, the project is being filmed at striking locations in India and abroad.