The film is directed by Ali Abbas Zafar of 'Mere Brother ki Dulhan' fame.
For the leading lady, Priyanka has been finalised, sources said.
A YRF spokesperson confirmed the development, without giving further details.
Priyanka would be teaming up with Ranveer and Arjun for the first time.
The film is set in Kolkata, between 1971 to 1988. Ranveer and Arjun play two boys who start out as wagon-breakers and coal thieves and go on to become powerful mafia figures.
Both Ranveer and Arjun started their career in Bollywood with YRF movies 'Band Baaja Baarat' (2010) and 'Ishaqzaade' (2012), respectively.
The film goes on floors this December.
Actress Evan Rachel Wood and fiance Jamie Bell are said to have wed this week and were spotted jetting out of the airport with matching rings.