Shah has been signed by Fox Star, a pan-Asian joint venture between Twentieth Century Fox and Star, in a multiple film deal, both sides announced here Friday.
Shah's "Singh is Kinng" grossed over Rs.1.5 billion and the deal marks the first move into Bollywood by Twentieth Century Fox.
Under the deal, Shah will produce a fantasy action movie and a contemporary romantic comedy and Fox Star will have a first-look right on his future projects.
Sanford Panitch, president of Fox International Productions, said the deal would bring in the latest film technologies to Bollywood.
"We are excited about this first step in our growth and are committed to building relationships in Bollywood with like minded producers and we hope to add value to the creative production process - by bringing the latest VFX and animation technology to Bollywood productions, " Panitch said.
Shah said the deal signalled "the future of Indian cinema".
"I have always believed in growing and surprising my audiences with every film I work on. The deal with Fox Star Studios gives me the opportunity to develop innovative concepts and work with the best talent to create films that will appeal to audiences around the globe, " Shah said.
"This is the future for Indian cinema - we have to partner with the best technical and creative talent from around the world while yet keeping the Indian soul in our films intact, " he added.