Guillermo del Toro will produce the ClearVision Media Production Group (CMPG) and Chiodo Brothers Productions project, which is set to begin shooting in mid-August in the UK.
Lawrence Gordon, Lloyd Levin, Steve Lanning and Cliff Lanning are also producing, and CMPG president and chief executive officer Melissa Wegman serves as executive producer with Clive Barker.
Dan Simpson will direct from a screenplay he co-wrote with Paul Kaye and Clive Barker about an ambitious young couple that relocates into a community where they become caught in a horrifying struggle between the past, present and future.
'We are delighted that Jennifer and Paul have committed to this project and look forward to beginning production later this summer in the UK,' Wegman said. 'Simpson and Kaye have written a unique script that will transform into an amazing feature film.'
Del Toro, Gordon and Levin have just started production in Hungary on the $72m fantasy sequel Hellboy II: The Golden Army, which Universal will release in August 2008.
Connelly recently completed production on Reservation Road opposite Joaquin Phoenix and Mark Ruffalo that Focus features will release in November. She is represented by ICM.
Bettany recently completed the first installment of Inkheart opposite Helen Mirren, Brendan Fraser and Andy Serkis for New Line. He is represented by ICM, Melanie Greene Management, and Troika.