Dara Singh died July 12 after a brief illness. He was 83.
"I feel very sad that he (Dara Singh) is not with us anymore. We had signed him for a Punjabi film that we will now start shooting next month and I also wanted him to be part of my Hindi film 'Dream', " Sandhu told.
"He was one of the best human beings that anyone would have met. So humble. He was the star on the film's muhurat day and everybody present there was in awe of him, " added Sandhu.
Sandhu's film "Dream" is said to be a biopic on late actress Divya Bharti, but the director has constantly denied it.
Asked about the replacement for Dara Singh's part, Sandhu said: "We have spoken to Ratan Aulakhji. He is Daraji's brother-in-law. He was seen in almost all Daraji's film and has been a director as well."
Dara Singh was also signed for Sandhu's Punjabi film "Love Behind The Border". Ratan has already replaced him in that, but talks are still on for "Dream".
"He (Ratan) will be doing the Punjabi project, and we have approached him for the Hindi film 'Dream', " said Sandhu.