The book, which charts her journey from childhood deprivation to Bollywood success, will be ghost-written by Nasreen Munni Kabir.
Khan told the Mumbai Mirror: "Nasreen had written a book [called] Women in Indian Film on women entertainers where I was featured. I like the way she wrote about my life. I believe she is the right person to write my story."
The dancer said that the book will spare no detail about her upbringing and her later life within the industry.
"My brother Sajid and I grew up under the most demanding conditions," she said. "My kids have it all, so I am trying to make them understand the real value of things."
The 46-year-old is about to embark on five months of uninterrupted shooting as she makes her acting debut in Shirin Farhad, directed by Bela Sehgal.
"I go into acting in October," said Khan. "Then it's goodbye to choreography, at least for some time now. After that I will direct my next film."
Khan appeared in front of the camera during the closing credits of Om Shanti Om and Main Hoon Na.
The choreographer also made a special appearance in Kuch Kuch Hota Hai with director Nikhil Advani.