A script is being written just for Shilpa, 31, and Hugh, 46, who are very excited about hooking up, The Daily Star said.
Quoting an unnamed industry insider, the report said: "It's going to be hotter than a vindaloo... with dancing, singing and a spicy story to boot."
The Celebrity Big Brother winner is scheduled to meet Hugh in London for talks on the Notting Hill-style box office hit, it said.
The source said, "She is a huge fan and is overjoyed at the thought of working with him. There will be some smouldering on-screen chemistry for sure.
"She brings all the glamour and he brings the laughs and with the headlines they both generate, the film is going to be huge."
The report said writers have already been hard at work on a rough draft of the plot with some of it being based on Shilpa's real-life experiences.
He said: "It is the story of a successful and charming, but shy, Bollywood diva who can't find the right man, until she links up with a producer who promises to help her crack the British and US markets... and they instantly click of course." Meanwhile Shilpa's family reportedly plans to take legal action against Jazz Barton and Bobby Khan for issuing statements on behalf of Shilpa claiming that they are her 'agent' and 'manager' respectively.
According to the buzz Jasveer Jazz Barton and Bobby Khan were extensively quoted as Shilpa's 'agent' and 'manager' in the UK media.
They gave interviews and statements to the media on behalf of Shilpa, whereas their association with her was only as co-ordinators between Endemol, producer of the Celebrity Big Brother, and the actress.
They are "acquaintances" of Shilpa, not "agent" or "manager".
Jazz Barton even went ahead and signed and sealed a contract with a UK media group on behalf of Shilpa, even while she was still in the Big Brother house. All this while, neither Jazz Barton nor Bobby Khan had any written agreement or contract with Shilpa.
Both Jazz Barton and Bobby Khan are currently in Mumbai and continue to give mixed statements on Shilpa, this time to the Indian media, the report said.
"The Shetty family plans to take legal action against them and might soon put up a defamation case," the portal said.