The 37-year-old director is best known for helming "The Lunchbox," which was nominated in BAFTA 2013 and won the Grand Golden Rail award at Cannes.
Batra has recently completed his work on the Charlotte Rampling-Jim Broadbent-starrer "The Sense of An Ending".
To be produced by Finola Dwyer alongside Redford and Erin Simms, "Our Souls At Night" is an adaptation of the Kent Haruf novel, reported Deadline.
The script is written by Scott Neustadter & Michael H. Weber.
Redford and Fonda have previously starred in 1967's "Barefoot in the Park" and 1979's "The Electric Horseman."
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