Hegde, known for his work in films like Black, Koi...Mil Gaya and Khamoshi: The Musical, confirmed the news.
In a text message, the choreographer said: "I'm doing Jhalak Dikhhla Jaa".
There is a strong buzz that the new season will have four judges. Filmmaker Karan Johar and dancer-actress Lauren Gottlieb are expected to join the duo as judges.
Meanwhile, Shahid, who started his career in showbiz as a background dancer, plans to share his dance expertise during his stint as a judge on the Colors show.
"Being a dancer brought discipline to my life and changed it completely. I'm now hoping to transfer some of the knowledge towards shaping the young and talented choreographers in our country," the Haider actor said in a statement.
The upcoming eighth season of Jhalak Dikhhla Jaa -- the Indian version of the internationally acclaimed reality show 'Dancing with the Stars' -- will feature celebrities like Shamita Shetty, Raftaar, Vivian Dsena, Radhika Madan, Kavita Kaushik, Sanaya Irani, Deepika Samson, Ashish Chowdhry, Mohit Malik, Scarlett Mellish Wilson and Faisal Khan.
The show is expected to go on air in July.