The director said that Bipasha Basu is to be the lead performer, with the monster as the film's 'hero'.
Bhatt told DNA India: "My new film's hero is a creature. And it is India's first creature feature on the lines of Jurassic Park where predatory animals create a horror havoc.
"Raaz 3 became a very expensive film because we had an eminently saleable hero with Emraan Hashmi on board. Creature is a high-concept film which won't waste money on paying for a leading man. We don't need a hero. We have the predatory animals.
"And we have Bipasha [Basu] who takes centre stage. Because we don't have to pay for a leading man, Creature would be a far less expensive film than Raaz 3."
Bhatt revealed last year that he will not be directing the sequel to Haunted - 3D.