The actor will produce and star in the blockbuster''Bleeding Steel' which is tipped to be the biggest budget Chinese production ever shot in Australia.
Mr Chan plays a special forces agent fighting to protect a woman from a criminal gang.
It isn’t the first time he has filmed a movie here - 'Mr Nice Guy' was shot in Melbourne more than 20 years ago.
Having lived in Canberra for two years, the world's second highest paid actor said he felt right at home in Australia.
"You know I'm almost like half-Australian…my parents lived here for 40 years," Mr Chan said at a press conference at the Sydney Opera House.
With a career spanning more than five decades, Chan, 62, has broken nearly every bone in his body but there's no stopping him from performing his own stunts.
"We have enough money to have a green screen but audiences don't like that. I still have to do my own things," he said.
The cast also includes Australian actors Tess Haubrich and Callan Mulvey.
The film is seen as a major coup for Australia's tourism industry with landmarks including the Sydney Opera House featuring prominently in the Mandarin-language film.
NSW Deputy-Premier and Minister for the Arts, Troy Grant, said: "600 million people will be able to see Jackie Chan but amongst that they will see the wonderful sites and locations where this movie will be shot."
With China expected to overtake the US as the biggest movie market as early as next year, Australia plans to capitalise on the boom with more co-productions with Chinese filmmakers who are attracted by local talent and glamorous locations.
