Khan's son, actor Fardeen Khan, was to reprise his father's iconic role in the new version.
The 69-year-old filmmaker had already recorded three songs for the film with music composer Anand Raj Anand but with his death on Monday, his last wish remains unfulfilled.
The 1980 blockbuster is one of the most successful films of Feroz Khan. The film, a love triangle between Vinod Khanna, Zeenat Aman and Khan, is still remembered for its stylish treatment and hit songs like 'Aap jaisa koi...', 'Laila Mein Laila' and the title track 'Qurbani qurbani'.
"Ferozji wanted to remake Qurbani with Fardeen in lead and he was in the process of rewriting the script. It is one of his most successful films and he wanted to recreate the same magic in a bigger way," Feroz Khan's manager Rajkumar Tiwari said.
"He had already recorded two songs for the film with music composer Anand Raj Anand. This project was very close to his heart and he was putting all his energy into it before falling ill," Tiwari added.
Khan had announced the remake of Qurbani as Kurbani at the 2006 International Indian Film Academy (IIFA) event in Dubai.
The actor-filmmaker died at 1:30 am at his farmhouse in Bangalore on Monday. He was diagnosed with cancer a year ago and was being treated at a Mumbai hospital.
His son and actor Fardeen Khan besides some other family members were at his bedside when the end came.
Khan last acted in comedy film Welcome with Akshay Kumar, Anil Kapoor and Katrina Kaif.
Anees Bazmee, who directed the iconic actor in his last film, said, "I will always be greatful to him for giving me the oppurtunity to work with him in Welcome.
"He was initially reluctant to work in the film but I convinced him because the role was written with him in mind," said Bazmee.
"He enjoyed acting afer a long time and became friends with Katrina Kaif, Akshay Kumar. I remember how he had become very emotional during the last day of the shoot and threw a party for the entire cast and crew," Bazmee added.
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