Blunt will play the young Victoria who became the Queen of England aged 18. The film, which is being produced by the Oscar winning duo of IEG chief Graham King and Martin Scorsese, charts Victoria's rise to power and focuses on her romance with Prince Albert.
Blunt earned a Golden Globe nomination this year for The Devil Wears Prada, and won the Globe for her supporting role in the BBC's TV film Gideon's Daughter.
'Emily's acting talent is very impressive,' King said. 'We think she is perfect to play this feisty, passionate young woman who went on to have nine children with the love of her life, Prince Albert.'
Blunt will next be seen in Columbia Pictures' horror release Wind Chill, due out next month, and is in post production on Universal's drama Charlie Wilson's War, which also stars Tom Hanks, Julia Roberts and Philip Seymour Hoffman and is being directed by Mike Nichols.
Other upcoming credits include Sony Pictures Classics' The Jane Austen Book Club opposite Maria Bello, The Great Buck Howard starring Hanks and John Malkovich, and the romantic comedy Dan In Real Life starring Steve Carell and Juliette Binoche.
The Young Victoria will be directed by Jean Marc Vallee from a screenplay by Julian Fellowes. Tim Headington and Sarah Ferguson are also attached to produce. Denis O'Sullivan will oversee the project for IEG.