The film will be co-produced by Khan and Bhansali's production banners.
Bhansali is re-teaming with Khan after two decades as a lead in the film, which is described as a "love story".
Salman took to Twitter to share the news.
"It's been 20 years but I am glad Sanjay and I are finally back in his next film, 'Inshallah'. Looking forward to work with Alia and inshallah we will all be blessed on this journey. #Inshallah #SLB @aliaa08 @bhansali_produc @SKFilmsOfficial," the actor wrote.
It’s been 20 years but I am glad Sanjay and I are finally back in his next film, Inshallah. Looking forward to work… https://t.co/jXbQRjR3qB
"Finally all speculations and wait end as 2019 brings together #SLB, @BeingSalmanKhan and @aliaa08 in his next film, #Inshallah. Wishing that this entire journey be filled with a lot of love and Inshallah, the team is blessed with hope and faith @SKFilmsOfficial @prerna982," the tweet from their official handle read.
Finally all speculations and wait end as 2019 brings together #SLB, @BeingSalmanKhan and @aliaa08 in his next film,… https://t.co/NcFoLuvocC
The film also marks Bhatt's first collaboration with both Khan and Bhansali.
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She said working with the actor-director duo is a dream come true for her.
"I was nine when I first walked into Sanjay Leela Bhansali's office, all nervous and hoping and praying that I would be in his next film. It's been a long wait.
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"Dream with your eyes wide open they say and I did. Sanjay Sir and Salman Khan are magical together and I can't wait to join them on this beautiful journey called 'Inshallah'#SLB @BeingSalmanKhan @bhansali_produc @SKFilmsOfficial @prerna982," Bhatt tweeted.
Dream with your eyes wide open they say & I did. Sanjay Sir and Salman Khan are magical together & I can't wait to… https://t.co/C0hS5gHS4U
The development came almost a month after Prerna Singh, CEO of Bhansali Productions, revealed Khan will star in Bhansali's next venture.
The filmmaker made his directorial debut with 1996's "Khamoshi - The Musical", which starred Khan. The actor went on to feature in the director-producer's classic "Hum Dil De Chuke Sanam" in 1999 opposite Aishwarya Rai Bachchan and Ajay Devgn.
Khan also made a cameo in Bhansali's "Saawariya", which launched Ranbir Kapoor and Sonam Kapoor.
On 53rd Birthday, Salman Khan Shakes A Leg With Sushmita Sen; Iulia Vantur & Katrina Kaif Among Guests
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Actor Salman Khan turned 53 today, and hosted a birthday bash at his farmhouse in Panvel, Navi Mumbai.
Along with family father Salim Khan, mother Salma, brothers Sohail & Arbaaz, sisters Arpita & Alvira, the who's who of Bollywood like Katrina Kaif, Sushmita Sen, Iulia Vantur among others, attended the private party.
Here's a look the intimate birthday party.
Actor Salman Khan turned 53 today, and hosted a birthday bash at his farmhouse in Panvel, Navi Mumbai.
Along with family father Salim Khan, mother Salma, brothers Sohail & Arbaaz, sisters Arpita & A..
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Actor Salman Khan cuts his birthday with nephew and sister Arpita Khan Sharma's son Ahil.
Rumoured girlfriend Iulia Vanture (behind) and the actor's bodyguard Shera (right) were also present during the cake cutting.
Actor Salman Khan cuts his birthday with nephew and sister Arpita Khan Sharma's son Ahil.
Rumoured girlfriend Iulia Vanture (behind) and the actor's bodyguard Shera (right) were also present during ..
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Katrina Kaif posed a picture from the Panvel Farmhouse party, wishing Salman on his birthday.
L-R: Brother Arbaaz Khan's son Arhaan, actress Katrina Kaif, sister Alvira's daughter Alizeh Agnihotri, and Salman Khan pose at the party.
Katrina Kaif posed a picture from the Panvel Farmhouse party, wishing Salman on his birthday.
L-R: Brother Arbaaz Khan's son Arhaan, actress Katrina Kaif, sister Alvira's daughter Alizeh Agnihotri, ..
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Actress Sushmita Sen posed a video of her dance with Salman Khan at the party on Instagram with a heartwarming message.
She remembered their journey in movies together from 'falling in love with Prem on screen in 'Maine Pyar Kiya' in 1989 to sharing the screen with him in 'Maine Pyaar Kyun Kiya' in 2005'.
Actress Sushmita Sen posed a video of her dance with Salman Khan at the party on Instagram with a heartwarming message.
She remembered their journey in movies together from 'falling in love with Pre..
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Politician and actress Beena Kak (L), who made her debut in 'Maine Pyaar Kyun Kiya' as Salman Khan's on-screen mother, posted a picture with the actor's parents Salim (C) and Salma Khan.
Kak has been an old friend of the Khan family.
Politician and actress Beena Kak (L), who made her debut in 'Maine Pyaar Kyun Kiya' as Salman Khan's on-screen mother, posted a picture with the actor's parents Salim (C) and Salma Khan.
Kak has bee..
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Actress Mouni Roy posted a picture with the birthday boy on Instagram from the Panvel party.
The Salman Khan fangirl revealed that laughter, food and dancing were the main ingredients of the evening.
Actress Mouni Roy posted a picture with the birthday boy on Instagram from the Panvel party.
The Salman Khan fangirl revealed that laughter, food and dancing were the main ingredients of the evenin..
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Viji Venkatesh, Regional Head of Max Foundation in India and South Asia, was also at the party. She posted happy pictures from the celebration with Salman Khan and Sushmita Sen on Instagram.
Viji Venkatesh, Regional Head of Max Foundation in India and South Asia, was also at the party. She posted happy pictures from the celebration with Salman Khan and Sushmita Sen on Instagram.
Politician Beena Kak (C) also shared an adorable selfie with former Miss Universe Sushmita Sen (R) and her rumoured boyfriend Rohman Shawl.
Kak and Sen worked together in 'Maine Pyaar Kyun Kiya'.
Politician Beena Kak (C) also shared an adorable selfie with former Miss Universe Sushmita Sen (R) and her rumoured boyfriend Rohman Shawl.
Kak and Sen worked together in 'Maine Pyaar Kyun Kiya'.
The theme of the night was warm and cozy as family members and friends go together to celebrate Salman Khan's 53rd birthday.
The four-tier cake had a film reel of the actor's memorable movie moments, and his initials 'SK' on the top tier.
The theme of the night was warm and cozy as family members and friends go together to celebrate Salman Khan's 53rd birthday.
The four-tier cake had a film reel of the actor's memorable movie moment..
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Actors like Sophie Choudry (left), Freddy Daruwala (bottom right), Digangana Suryavanshi (top centre) and Sonu Sood (top right) were also seen at the party. They shared selfies with the birthday boy Salman Khan on Instagram.
Actors like Sophie Choudry (left), Freddy Daruwala (bottom right), Digangana Suryavanshi (top centre) and Sonu Sood (top right) were also seen at the party. They shared selfies with the birthday boy ..