Distant Horizon is producing in association with Japan's Action 5 and Hakuhodo. Hong Kong DoP Poon Hang Sang will shoot the film with special effects overseen by Leonard MacDonald and the Creature Effects team whose credits include 300 and I Am Legend.
Set in and around an abandoned film studio, Don't Look Up tells the story of a director and his crew who are driven mad when sprits from another era possess their film stock.
Distant Horizon's Anant Singh said: 'We are delighted to be starting production on Don't Look Up in Los Angeles. We have assembled a great team with director Fruit Chan and a really talented cast. We are thrilled to be doing the Hollywood re-make of what is considered to be Nakata's most frightening work.'
Singh and Brian Cox will produce, along with Yoko Asakura of Action 5. Richard Jeffery and Philip Lee are executive producers.