Inspired by the life and times of the legendary IP Man, the mentor to Bruce Lee, the film deals with themes of war, family, revenge, desire, love and memory.
The film will be presented as the opener in the official selection, but it is screening out of competition at the festival, which runs from February 7 to 17,.
"It is a special honour for us to open the 2013 Berlinale with the presentation of the newest film by this year's jury president, Wong Kar Wai. With 'The Grandmaster', Kar Wai has added a new and exciting facet to his body of works, and created an artful, visually powerful genre film," festival director Dieter Kosslick said in a statement.
Nearly three years of film production and almost a decade of preparation went into the making of 'The Grandmaster'. Kar Wai first started exploring the idea in 1996. The master director said he was honoured to premiere his film at Berlin.
"I am truly very honoured by Dieter and his invitation for my new film 'The Grandmaster' to participate in the 63rd Berlinale and to open the festival. This is a dream project for me that I had been developing for many years. I am very happy to be able to present it in Berlin," the director said.
With his signature style-defining mood, atmosphere and reality, Kar Wai delves into the eternal question in martial arts of whether the victor is more than merely the "last man standing", and brings the genre to new heights.
The film will release in spring 2013.
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Kar Wai is known for his films like 'Being Wild', 'Ashes of Time', Chungking Express', 'Fallen Angels', 'Happy Together and 'In the Mood for Love'.
He also directed Pandit Ravi Shankar's daughter Norah Jones in 'My Blueberry Nights' opposite Jude Law.