Ending months of speculation, production house Sun Pictures officially announced that Arjun’s next film will be helmed by Tamil director Atlee, best known for the Shah Rukh Khan-starrer Jawan.

A short video released on social media showed Arjun and Atlee visiting Sun Pictures’ headquarters in Chennai, where they were seen signing the agreement in the presence of the company’s chairman Kalanithi Maran. The two later reportedly flew to the United States to visit top visual effects studios, hinting at the scale of the project.

Tentatively titled AA22 and referred to internally as A6—Atlee’s sixth directorial—the film is being positioned as a high-budget pan-Indian release. According to entertainment portal Pinkvilla, the film will be mounted on an estimated budget of Rs 800 crore. This includes Rs 250 crore earmarked for visual effects and Rs 200 crore for production costs. If confirmed, this would make it one of the most expensive Indian films currently in development. Arjun is reportedly being paid around Rs 175 crore for the film, in addition to a 15% share in profits, according to media reports. Atlee, who gained nationwide attention with Jawan, is said to be charging Rs 100 crore for the project.

The announcement comes at a time when other high-profile Indian films, including Mahesh Babu’s upcoming collaboration with SS Rajamouli, are also operating on large budgets. That film is reportedly set to cross Rs 1,000 crore in production and marketing. Speaking earlier about the upcoming project, Atlee said the film has been in development for some time and that the team is currently in the pre-production phase. “A6 really consumes a lot of time and energy… I feel A6 will make the country proud,” he said in an interview, adding that casting announcements will be made soon.