The film is helmed by Apoorva Lakhia of "Shootout at Lokhandwala" fame.
"Thank you Shekhar (Ravjiani)! It is a brilliant script... I can't wait to play haseena," Sonakshi, 28, posted on Twitter after the music composer Shekhar congratulated the actress for her new outing.
Dawood has two sisters -- Haseena Parkar and Saeeda Parkar.
Haseena, who was known as the underworld queen, used to stay with her son Alishah and a 21-year-old-daughter in Mumbai's Nagpada. At the age of 55, she passed away last year after suffering a massive heart attack.
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This is not the first time Sonakshi, who is currently busy with her stint in "Indian Idol Junior", will be starring in an underworld film.
She had played Dawood's love interest in "Once Upon ay Time in Mumbaai Dobaara!", which was said to be based on the life of the fugitive don.
"Haseena" will go on floors from next year.