"Akshay is all set to make his Tamil debut with the film in which he will be playing the villain," a source from the film's unit told IANS.
The makers had initially planned to rope in "The Terminator" star Arnold Schwarzenegger, but the deal did not happen.
The film -- a sequel to "Enthiran" -- will be helmed by Shankar.
Also starring Amy Jackson, who will reportedly be playing a robot, the film is being produced by Lyca Productions.
While A.R Rahman will compose the tunes, Nirav Shah will crank the camera.
"Baahubali" fame Srinivas Mohan will take care of the visual effects work in the film, which will hit the screens next year.