Rumours about Ajay's ouster from the film have been abuzz, but Amitabh confirmed the development on his blog.
"Preparations for 'Aarakshan' with Prakash Jha are on in swing and another meet today was done to finalise aspects of the oncoming shoot. Saif Ali now replaces Ajay and soon we shall be making a final announcement of this, " he posted.
Saif and Amitabh had earlier worked together in "Eklavya - The Royal Guard", which was India's official Oscars entry in 2007.
"Aarakshan" deals with the issue of reservation and its impact on the society. It is expected to be shot in Bhopal, where Jha had shot his hit movie "Raajneeti".