"This could be the breakthrough needed for making the Berlin destination known to the Indian market, " Berlin tourism director Burkard Kieker said. "It's exactly what we want."
"Don 2" - a sequel to the blockbuster "Don" - is being supported by the Berlin-Brandenburg film promotion company Medienboard to the tune of 550, 000 euros ($705, 000).
Farhan Akhtar will direct the film, with the shoot scheduled to last 50 days and taking place in many landmark Berlin sites.
Khan stirred up a bit of Bollywood fever in Berlin last winter when his film "My Name Is Khan" was featured at the Berlinale film festival.
"The Indian superstar and the film location Berlin will make for a great couple before the largest audience in the world, " said Medienboard managing director Kirsten Niehuus. "Don 2" will appear in cinemas in the course of 2011.