The actor said that he and co-star Abhishek Bachchan are excited about recreating the on-screen chemistry of Dostana.
Abraham told Bollywood Mantra: "Yes, Tarun Mansukhani has finally got the plot in place. And we're all set. I maintain Abhishek is my best screen-jodi. And I can't wait to get cosy with him on screen."
The Vicky Donor producer insisted that he cannot divulge too much about the film, but confirmed where it will be set.
''Dostana 2 would be set in London and Punjab," he said.
A source added: "The Californian seaside setting of Dostana took care of all the water-related activities. Dostana 2 would unfold on terra firma. No beaches and, sorry, no John in dangerously low-waist swimming trunks."
Another insider said: "The sequel is going to be far more naughty and wicked. There'll be lots of sexual jokes, though Karan Johar and Tarun Mansukhani would make sure that the gay community would not get offended. Innocuous fun would still be the key."
Speaking to Digital Spy last year, producer Johar confirmed that the film would begin shooting in 2012.
Priyanka Chopra starred alongside Abraham and Bachchan in Dostana.
Katrina Kaif is reported to have replaced Chopra in the second instalment of the gay-themed comedy.