The Slumdog Millionaire star will be seen in Roger Donaldson's Cities, according to Mid Day.
Kapoor, who recently completed shooting on Mission: Impossible 4, is to play the part of a Mumbai policeman battling property development corruption.
The project, which begins shooting in October, will be set in London, New York and India.
24 star Kapoor is regarded as one of the few Indian male actors to have achieved commercial success in the US.
Cities is expected to launch at the Cannes Film Festival.