The actor, who is best known for his roles as a romantic hero, will feature in the Hindi remake of Tamil release Vettai, claims Hindustan Times.
Siddharth Roy Kapoor, CEO at UTV Motion Pictures stated: "Yes, we are in advanced discussions with Shahid, but till we make a formal announcement, I wouldn't like to say much about the cast."
South Indian star Madhavan is expected to reprise his role in the Bollywood remake of the movie.
The project is said to revolve around two brothers who use physical force to stop their family from being threatened by criminals.
"Vettai is essentially an action film, but like other south Indian films, it also has a dose of masala entertainment including humour, stunts, dance, songs and romance. But in terms of genre, it's an action - rough and rugged kind - film," explained the UTV head.
Mausam star Kapoor recently celebrated his birthday with friends in Goa.