Vibe and Colombian radio station W Radio first reported the collaboration between Smith and Jam, with other reports confirming that Istrefi is set to join them.
The song will be produced by American producer Diplo and is set to be released on May 25.
Smith, the well-known actor and rapper, began his musical career alongside DJ Jazzy Jeff before launching into a lucrative acting career, though he hasn't released a solo album since 2005.
Jam is among Latin America’s biggest stars and he and Smith became friendly earlier in the year when the actor posted a video of him doing karaoke and dancing along to Jam and J Balvin's hit "X".
Smith later asked Jam to join his son Jaden on the song remix, which is set to drop later in May.
The official World Cup anthem is usually performed at either the ceremony to open the tournament or the one to close it, with Pitbull and Jennifer Lopez singing We Are One at the 2014 opening ceremony, while Shakira’s Waka Waka closed out the 2010 competition in South Africa.