"This will be a monument to universal justice that Mostar needs more than any other city I know."
He said Mostar, scene of fighting between Muslims and Croats in 1993-1994, needed a symbol of justice, mastery and honesty - virtues upheld by the late Chinese-American actor.
Born in San Francisco, Lee starred in several kung fu movies, including 1973's "Enter the Dragon". He died at the age of 32 from swelling on the brain.
A German organisation agreed last year to sponsor the project with a 5,000 euro（$6,162）grant.
The statue, cast in bronze and showing the martial arts master in a typical fighting pose, will be designed by a local sculptor and put up in central Mostar.
Lee's widow Linda will be invited to attend the ceremony.
For years, reconciliation in post-war Mostar was slower than anywhere else in Bosnia. But the reconstruction of the city's Old Bridge last year has helped reunite Muslim and Croat communities separated by the river.