Actress Vidya Balan and director Pradeep Sarkar have reportedly settled their 'dispute' and are all set to work together on a new project.

Apparently, when Vidya turned down Sarkar's 2007 movie Laaga Chunari Mein Daag, it did not go down very well with the director and the things had been quite cold between them since then.

Even though it was through Sarkar's 2005 film Parineeta, that Vidya stepped into the national limelight, won critical acclaim and even a Filmfare award, the script of Laaga Chunari reportedly did not impress her much.

And judging by the way Rani Mukherjee's career went after starring in the movie, it seems to have a smart move on Vidya's part.

According to reports, a couple of days ago, the duo met on the sets of an ad-shoot and once the cameras started rolling, Vidya and Sarkar were back in the good old days.

Rumours say, Bollywood megastar Amitabh Bachchan, who was also present there, suggested Sarkar to pair up with Vidya again, after saying how much he had enjoyed Parineeta.

Though details are hard to come by, buzz is that Sarkar too is apparently keen on casting Vidya in his upcoming movie, which is said to be a costume drama, to recreate the magic of of their previous endeavour.