"Munnabhai" series, directed by Rajkumar Hirani, follows the comic adventures of Munnabhai aka Murli Prasad Sharma (Dutt) and his sidekick, Circuit or Cirkeshwar (Arshad) in "Munna Bhai MBBS" (2003) and "Lage Raho Munna Bhai" (2006).
Dutt is currently serving a jail term for illegal possession of arms that was part of a cache of weapons meant to be used during the 1993 Mumbai blasts.
Director Subhash Kapoor is helming the third part, which got delayed following Dutt's sentencing.
"I am doing 'Munnabhai' part three for Sanju. He has had a tough life, he will need a film like 'Munnabhai' that will boost his morale, take him up there," Arshad said.
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Arshad, who will be next seen in Kapoor's "Guddu Rangeela", doesn't enjoy doing films that are in series, but "Munnabhai" and "Jolly LLB" are an exception.
"Jolly LLB", a court room drama, will see Kapoor and Arshad re-teaming again for the sequel.
"We never expected that the second part will be made. But now that the people have loved the film so much, we have to make sure the standard is maintained in the sequel," he said.
The actor is looking forward to the release of his upcoming film "Guddu Rangeela", which also stars Amit Sadh and Aditi Rao Hydari. The film is set to release on July 3.