The film will compete with 11 other titles at the event to be held between June 8 and 19, according to the official website of the Sydney Film Festival.
Confirming this, Kashyap tweeted: "'Raman Raghav 2.0' in competition at Sydney."
The jury comprising five international and Australian filmmakers and industry professionals will award a cash prize of $60,000 at the closing night ceremony on June 19.
The 2016 Official Competition jury members are: Jury president, international programmer and producer Simon Field (Britain); writer, director and producer Robert Connolly (Australia), Dublin International Film Festival director Grainne Humphreys (Ireland), producer Bridget Ikin (Australia) and documentarian Kazuhiro Soda (Japan).
"Apprentice", "Aquarius", "Certain Women", "The Childhood of a Leader", "The Endless River", "Goldstone", "It's Only the End of the World", "Land of Mine", "Letters from War", "Notes on Blindness" and "Viva" are the rest of the films competing with "Raman Raghav 2.0" ("Psycho Raman").
"Raman Raghav 2.0" will also premiere at the Cannes International Film Festival's 'Directors' Fortnight' section this year.
The film, which stars Nawazuddin Siddiqui and Vicky Kaushal, is slated for a June 24 release.