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The eight-episode series, which will be streamed worldwide, will feature dialogues in Hindi, Urdu, English and other languages, the Hollywood Reporter stated.
The drama will be produced by Khan's banner Red Chillies Entertainment.
"Netflix has shown that Indian stories have a global audience and we would love to use this platform and its reach to tell more stories," said Khan.
"We believe in the global vision of Red Chillies to create groundbreaking content out of India," said Netflix founder and CEO Reed Hastings.
"It's exciting to deepen our relationship with Red Chillies and expand our slate of originals in India", he added.
Currently, the Indian series Sacred Games, directed by acclaimed filmmaker Anurag Kashyap and Vikramaditya Motwane is under production.