The Memorandum of Understanding was signed at the official residence of Chief Minister Akhilesh Yadav.
The project will be jointly developed by the state government and Khan's company, Kingdom Entertainment Private Limited.
On the occasion, Yadav said India's historical and cultural heritage will be depicted through the park which would be relevant for students, tourists and researchers.
"The world will get to know more about the country, especially Uttar Pradesh," Yadav said, adding that the project would also create employment opportunities.
On behalf of the Uttar Pradesh government, the MoU was signed by the Managing Director, UPSIDC (Uttar Pradesh Small Industrial Development Corporation), Manoj Singh. Sanjay Khan signed on behalf of his company.