While it is known that Arjun Kapoor is playing the lead in Karan Johar's '2 States', an adaptation of writer Chetan Bhagat's famous novel; the leading lady of his film was yet to be decided.

While there were many actresses who were being considered to play this role, it is now heard that KJo has chosen Alia Bhatt for the coveted role.

According to sources, Karan who is highly impressed with Alia's debut performance in his film 'Student Of The Year', has decided to cast the petite actress opposite Arjun.

'2 States' is the story of a north Indian boy falling for a south Indian girl and how their respective cultures influence their lives together. The film will be directed by Abhishek Verman, who was the creative director in Alia's debut film.

An official announcement remains to be made.