Grant's film credits include "Four Weddings and a Funeral," "Sense and Sensibility," "Notting Hill," "About a Boy," "Love Actually," "American Dreamz" and "Music and Lyrics."
In "Lost," he would have played a British actor approached to star in a movie by a Chinese director with whom he falls in love after a brief flirtation with her translator, the entertainment industry trade newspaper said.
Ziyi Zhang has been cast in the role of the director.
Grant officially withdrew from the project late last week.
"This was a case of creative differences," Grant's spokeswoman told Variety.com. "They were not able to get a script everyone agreed on, but it's our understanding that Working Title is moving ahead with the project and Hugh wishes them well."