The news comes after Katrina Kaif, who was the original choice for the makers, opted out of the Remo D'Souza-directorial due to prior commitments with Salman Khan's period drama 'Bharat'.
Film critic Taran Adarsh took to social media to make the announcement.
He tweeted, "IT'S OFFICIAL... Director Remo D'Souza, Varun Dhawan and Shraddha Kapoor reunite [after #ABCD2] for a new dance-based film... Filming begins 22 Jan 2019 in Punjab... Major chunk will be shot in UK... Produced by Bhushan Kumar, Krishan Kumar and Lizelle D'Souza."
The 'Sui Dhaaga' actor also extended his warm welcome to Shraddha. Along with a picture with his co-star, Varun wrote, "welcome home chirkut @ShraddhaKapoor"
According to Adarsh's tweet, the film goes on floors later this month.