The Australian star will replace original choice Shakira, after her performance fee was deemed to be too high, reports The Times of India.
"We've approached Nicole Kidman to do a song, but I wouldn't call it an item song. We have mailed Nicole the song and her response is positive, just her dates are awaited," said director Rumi Jaffery.
Item songs in Hindi films often feature celebrity figures and stars and are typically used to promote the movie across music channel platforms.
"Earlier, Shakira had been approached for it, but due to some monetary issues, it couldn't work out," added the filmmaker.
Shakira had previously been expected to feature on the soundtrack to the big budget thriller Azaan, which released last month.
Kylie Minogue holds the record for the highest payment for a Bollywood song, with her special appearance on the AR Rahman-composed track 'Chiggy Wiggy' from Blue.
Kidman is said to have asked for a payment of 6 crore (£690,000).