It is now almost confirmed that Atlee will be directing Vijay 63 except for an official announcement from the producers. Atlee will be collaborating with Vijay for the third time after blockbusters Theri and Mersal. The film will be bankrolled by AGS Entertainment. According to reports, the production house has laid down few conditions to director Atlee before signing the final agreement papers.

Atlee’s exuberant production costs during the filming of Theri and Mersal is being cited as the main reason. Due to his improper planning, the original estimated production cost has gone way over the budget making it difficult for the production houses to generate revenue from the film’s business. Another reason quoted is procuring bulk dates from artists' and not properly utilising them in the movie.

Producer T Siva of Amma creations had earlier hit out at the director saying, “No producer should gives films and no actors should allot dates to Atlee’ due to his budget overshoot and also stated that Mersal went on to be a loss for the production house Thenandal films despite being a blockbuster.

Keeping the aforesaid reasons in mind AGS Entertainment has laid few strict conditions to Atlee to keep the proposed film budget under control for their next production venture Vijay 63 (tentative title) with Vijay in the lead role.

Director Atlee and his team of assistant directors should use the office space provided by AGS Entertainment for any work related to the film. In case if they require a separate office from what is allotted, Atlee has to care of the all the expenses that will incur including the rent for the office.

The production house has made him sign the agreement papers by including the estimated final film budget (with detailed breakup) for Vijay 63. In case the budget shoots up than estimated, Atlee will have to bear the costs which the production house will recover from his remuneration.

Reportedly Atlee has agreed to all the terms and conditions laid by the production house and has signed the agreement papers as well. Vijay's Sarkar directed by AR Murugadoss is expected to be wrapped in August and the actor will then begin work on Vijay 63 with Atlee.