"This film will help bridge the gap between people of the Indian mainland and those from the north-eastern states," Mary Kom told the BBC.
The five-time world champion is from the remote northeast state of Manipur.
Bhansali, who has been planning the film for a year, described the boxer as an "inspiration to every Indian woman".
"I am very impressed with the way Mary Kom is leading her life with so much conviction and courage. We'll start working on the film very soon. I haven't decided on who will play her role," Bhansali told the BBC.
Recently, thousands of north-eastern people fled the Indian cities of Mumbai, Bangalore and Hyderabad fearing reprisal attacks in the wake of ethnic clashes between Bodo tribes and Muslims in the north-eastern state of Assam.
The boxer says she has been worried about her relatives and friends living in Bangalore and "could not properly sleep at night when this exodus was taking place".
The mother of twin boys feels that Bhansali's film on her will help clear the air because "our people look different but they are Indians. We have the same passions when the country is involved".
Bhansali's assistant Omung Kumar, who researched Mary Kom's life and wrote the script, will direct the film.
But will it be possible to screen the movie in the boxer's home state Manipur, where separatist rebels have imposed a ban on Bollywood films?
"I hope nobody will object to a film if it centres on my life story, my struggles to become a boxer," Mary Kom said.
India's thriving film industry has rarely picked on themes from the country's long-embattled north-eastern states and the few films that have been made have focused on the separatist insurgencies and India's counter-insurgency efforts in the region.

Speaking in an ITV documentary about his charity work in Lesotho, the prince said losing his mother at a young age made him question his position.
He said he used to "bury his head in the sand" but now views life "very, very differently".
Harry co-founded the Sentebale charity with Prince Seeiso of Lesotho to help young people affected by HIV/Aids.
The 32-year-old prince told the programme: "I always feel like I need to make something of my life.
"I was fighting the system, going 'I don't want to be this person; my mother died when I was very, very young and I don't want to be in this position'.
"But now I'm just so fired up and energised to be lucky enough to be in a position to make a difference."
Sentebale has delivered adolescent HIV testing and counselling services to more than 21,000 people since it was founded in 2006, and plans to expand into several sub-Saharan African countries by 2020.
Harry was interviewed by broadcaster Tom Bradby, who shadowed the prince when he first visited Lesotho 12 years ago.
The prince said it was "fun to be good and boring to be bad".
"If you're me, if you're your Average Joe, whoever you are, if you can't affect politics and change the big things in the world then just do whatever you can do.
"Whether it's in your local community, your village, your local church, walking down the street, opening a door for an old lady, helping them cross the road.
"Whatever if it is, just do good. Why wouldn't you?"
The programme, due to be broadcast on Monday 19 December, also features contributions from musicians Sir Elton John, Joss Stone and Chris Martin of Coldplay.
Harry is reunited with a teenager he met on his first visit and is seen dancing with local children.
Indian Olympics bronze medallist, boxer MC Mary Kom, has welcomed a film that Bollywood director Sanjay Leela Bhansali wants to make on her life.
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Prince Harry has said he no longer struggles with his royal role and wants to "make something" of his life.