They are also working on a film on legendary Sufi poet Rumi to be shot in India and Turkey.
"The centre would work to promote Sufi thoughts and ideas. It'll have a school, an arts centre and would basically propagate all the things that Sufism teaches," Ali said.
"It would work on rural development, bring out books and magazines and organise events and festivals. Sufism teaches that the main thing is compassion and sensitivity - and these are really lacking nowadays," tells Ali.
"This centre would work towards trying to reinstall sensitivity among people. We would work at making people think with their hearts and with feeling, not be totally commercial and also have spiritual dimension."
The film on medieval mystic and poet Jalaluddin Rumi, who was born in Afghanistan in the 1200s, has been written by Ali and would be shot in Turkey and India.
"I have just finished the script and we are now looking at actors and shooting locations," said Ali, who made the stunning "Umrao Jaan" more than 20 years ago.
In fact, Ali, who is an erstwhile royal from Lucknow, also runs an eminently successful design label Kotwara. He learnt fashion from America's Mary McFadden who also designed the clothes for his film "Zooni", which was shot in Kashmir.
Chopra has made a series of the audio CDs, which have stars like Madonna and Demi Moore reading the love poems of Rumi.
Chopra and Ali are also starting a Rumi Foundation that would propagate the magnificent poetry of the mystic and also organise the annual Jahan-e-Khusrau festival.
"Rumi is now one of the America's most popular poets," said Ali. "The West is torn between how to dominate the world and how to find itself. Actually finding yourself is a little difficult if you're trying to dominate others. Somehow the 'I'm superior' approach to life is not working.
"So they are increasingly having to turn to the East looking for peace."
About his association with Chopra, Ali said: "It was as if this was meant to be. You see birds of the same feather do flock together."