The 43-year-old told the actor that she instead would be returning to the US, as she misses her children, Hindustan Times reports.
The Dil To Pagal Hai actor, who had previously worked opposite Rajnikanth in 1987, has been living outside India for a number of years.
Dixit had been offered one of the lead roles in the project, which also features Deepika Padukone.
The veteran actress was last seen in the 2007 semi-hit Aaja Nachle.
