Chan will also produce the film through JCE - his joint venture with Albert Yeung's Emperor Motion Pictures (EMP) - while EMP will handle international sales.
The Hong Kong star has long expressed a desire to work with Yee, the award-winning director of film such as Lost In Time and One Nite In Mongkok, as part of a move towards more character-driven projects. The long-gestating Shinjuku Incident revolves around the lives of Chinese immigrants in Tokyo in the 1990s.
Production is scheduled to start before the end of the year in Tokyo and possibly also mainland Chinese locations. Chan is the only confirmed cast although stars such as Daniel Wu and young Japanese actor Takizawa Hideaki have been named in connection with the project.
Chan is currently filming Forbidden Kingdom, in which he co-stars with Jet Li, for Casey Silver Productions and Relativity Media. Rob Minkoff is directing the $70m picture which is shooting at China 's Hengdian Studios.