Portugal's leading producer Paulo Branco is set to work with Chile 's leading director Raoul Ruiz on the dark, suspense drama Misterios De Lisboa.

'The film is based on the work of Camilo Castelo Branco, one of Portugal 's greatest writers,' Paulo Branco told ScreenDaily.

'It is a melodrama that exposes the light and dark side of characters in 19th century Europe. Camilo Branco originally wrote the story for a local paper in the style of a novella, with each chapter enticing the reader to continue unravelling the mysteries. Ruiz and I both loved it.'

Portuguese scriptwriter Carlos Saboga is adapting the story into a screenplay, and Branco hopes to start preparing the film in March for a summer shoot in Portugal. Clap Filmes is producing.

Branco and Ruiz have previously collaborated on several films, including Klimt (2006), starring John Malkovich, and Marcel Proust's Time Regained, starring Catherine Deneuve, which featured in competition at Cannes in 1999, and Treasure Island (1985).

Misterios De Lisboa will be Branco's 240th film he has worked on.