Narayanan is the producer of the current Tamil hit "Vettaiyadu Vilaiyadu" starring Kamal Haasan.
The yet untitled film is likely to be a bilingual venture with a Hindi version. Narayanan has reportedly held discussions with both Amitabh and Vikram.
The film will be a dream come true for both the stars.
On every visit to Chennai, Big B has expressed his desire to debut on the Tamil screen, according to industry sources.
He made a brief appearance in last year's Kannada blockbuster "Amruthadhare" - his first south Indian film.
Vikram, who got his first break years ago in "Ullasam", which was financed by ABCL, is excited about the idea of acting with Amitabh - his long-time idol.
Vikram has revelled in the role of an angry young man in many of his films - a role popularised by Amitabh in his younger days.
Although Amitabh has not acted in any Tamil movie, he is a familiar face in Tamil Nadu because of the Tamil version of the popular quiz show "Kaun Banega Crorepati".