Scripted by regular To collaborator Wai Ka-fai, the story follows a former assassin, now a French chef, who comes to Hong Kong to avenge his daughter whose family was murdered.
The cast also includes To favourites Anthony Wong, Lam Ka Tung, Lam Suet and Simon Yam.
'This is my first time ever in China. I'm very proud to be directed by a master such as Johnnie To,' said Hallyday in a statement.
'As my first international film, I'm sure this collaboration will bring a new edge to my film-making,' said To.
ARP last year acquired Hong Kong thiller Eye In The Sky, directed by Yau Nai Hoi and produced by To.
Vengeance has started shooting and is planned for a summer 2009 release.