"Lyca Productions and A.R. Murugadoss will jointly produce the remake, which will be directed by debutant Jagan," a source close to Murugadoss told IANS.
"Kaththi", which featured Vijay in dual role, was directed by Murugadoss and produced by Lyca.
The film's shooting will start from April 2016.
This will be the second time Akshay will star in the remake of Vijay's film. He previously worked in the "Thuppaki" remake, which was named "Holiday: A Soldier Is Never Off Duty".