Leading film composer Vishal Dadlani was quoted in the Indian media as saying that the video was called 'We Lived In His World'. It would be aired on August 29, according to the Mumbai Mirror newspaper.
Jackson, whose sudden death in June shocked millions of fans around the world, was due to be buried on the same day, his family said this week.
'The King of Pop' played a sell-out gig in India's entertainment capital Mumbai in 1996. Bollywood stars, film directors, choreographers and musicians have cited him as a major influence on their work.
According to Mumbai Mirror, the 'We Lived In His World' video had been spearheaded by actor Shah Rukh Khan and his production company Red Chillies.
Dadlani is one half of the music directing duo Vishal-Shekhar responsible for the film scores on some of Bollywood's biggest films, including Om Shanti Om and Salaam Namaste.
The Jackson tribute would reportedly include messages from Khan and fellow actors Hrithik Roshan, Shahid Kapoor, Katrina Kaif and Priyanka Chopra among others. No one had asked for payment for the tribute, the newspaper said.
Composer A.R. Rahman, who won two Oscars this year for his music on the hit film Slumdog Millionaire is reportedly making a tribute album to Jackson.
Rahman has previously described the singer as an inspiration.