Penned by young Indian author Bilal Siddiqi, the story will be brought to life as an eight-episode high-octane political espionage thriller series.
Shah Rukh said in a statement: "We have always tried to create world class content and entertainment from India. Netflix has shown that Indian stories have a global audience and we would love to use this platform and its reach to tell more stories."
Reed Hastings, Netflix Founder and CEO, said he was excited about expanding its slate of originals in India.
"We are thrilled to work with a brilliant, young writer like Bilal Siddiqi and take his gripping, inventive storytelling to Netflix members worldwide," said Hastings.
Set against the backdrop of the Indian subcontinent, the multilingual series will tell the story of an expelled spy, Kabir Anand, who is recalled from his new life as a Shakespeare professor in Panchgani to save his country and long-lost love.
A combination of combat skills, intellectual background and personal circumstances propel Kabir to avenge the past and face his deadliest enemies in a race against time
According to the makers, the series will involve "intricate, highly stylised action sequences never before seen on screen in India".
The series will be shot on location and the characters will interact in Hindi, Urdu, English and other languages.
Venky Mysore, CEO, Red Chillies, said: "We can't wait to bring this thrilling nail-biter to screens around the world."