Karan Johar, who will be producing the film, took to Twitter to share the news. The movie is expected to release on December 23, 2016.
"Ayan Mukherjee's next for Dharma productions is slated to begin mid next year and release December 23rd, 2016. Ranbir Kapoor and Alia Bhatt..," the director-producer tweeted.
Alia has always been vocal about her desire to work with the star.
Ranbir had apparently suggested Alia's name to Imtiaz Ali for their upcoming film, but the director felt Deepika Padukone suited the role better and cast Alia in 'Highway' instead.
Ranbir and Ayan, who are very close friends, have delivered two successful films together in 'Wake Up Sid' and 'Yeh Jawaani Hai Deewani', both for Dharma.