Shah Rukh Khan was to star in Sajid Nadiadwala's Two States based on a Chetan Bhagat's novel.

The film was to be directed by Vishal Bharadwaj. However now that's changed. The film will be produced by Karan Johar and Sajid Nadiadwala starring Ranbir Kapoor.

Says an insider, "Karan approached Sajid to co-produce the film." This is the first time that KJo is co-producing a film with another banner. SRK"s banner Red Chillies is almost home ground, so it doesn't count. Karan admits, "Abhishek Varman who assisted me on My Name Is Khan and is now creative director on Student Of The Year has written a simple and fantastic adaptation of Two States. Sajid has the rights of the book and we are in discussions about an association."

Sajid confirms, "Karan and I are in talks to produce a film together. He approached me but nothing has been finalised as yet. What gives me a high is that if the marriage between the two production companies do happen, it won't be for financial reasons but pure creativity where the intention is to produce a good film."