Chou will reunite with Kung Fu Dunk director Chu Yen-ping in the $14.6m (RMB100m) production.
Chinese state-owned China Film Group Corporation, Beijing-based TV production company Joy Media and Taipei-based Chang Hong Entertainment, backer of Kung Fu Dunk, will jointly finance and produce the film.
The story of the film tells of a couple who accidentally embark on a time-traveling journey to the tomb of Genghis Khan, and find themselves hunted by fighters and soldiers for an unknown treasure.
Tony Chin Siu-tung will serve as action director of the film. Shooting will start in March while the release date is aimed at early 2010.
Jay Chou has a large fan base in mainland China which is believed to be the main reason the two Chinese companies being brought on board.
Chou starred in Zhang Yimou's 2005 period drama Curse of Golden Flower and the film topped that year's box office, taking in $42.46m (RMB290m).
Chou's directorial debut Secret gained more than $4.39m (RMB30m) in 2007 while his basketball comedy Kung Fu Dunk made into top 10 in China's 2008 chart, with $16.54m (RMB113m).