The film, set in the pre-Independence era, will be directed by National Award winner Bengali director Srijit Mukherjee, who is making his directorial debut in Hindi cinema.
Produced by Mahesh Bhatt's (Vishesh Films), 'Begum Jaan' is about the trauma of displaced women in a brothel during the Partition. Vidya plays the madame of the brothel.
"It is nice to have a team that is so passionate about the film and associated only because of their passion towards cinema," Mukesh Bhatt of Vishesh Films said in a statement here.
It has been more than a decade ago that Malik and Bhosle came together for a film, while Vishesh Films' also worked last with Malik and Bhosle about a decade ago, it said.
The 'Main Hoon Naa' hitmaker, who was hospitalised last week, had met Bhosle in the hospital to talk to her about the songs so that the work happens as per schedule and doesn't get delayed due to his ill health.
The shoot of 'Begum Jaan' is expected to start from mid June in Kolkata where a huge set is being erected.