Legendary screenwriter Jean-Claude Carriere has been working on the screenplay of the film, a period piece set during the last days of the Austro-Hungarian Empire.
A sales agent is yet to be appointed and casting is also to be confirmed.
Shooting is slated to begin in February next year, after the launch of Funny Games. It will be shot in two parts - a winter shoot and a summer shoot.
Meanwhile, it has been confirmed that Michael Haneke's eagerly awaited $15 million US remake of Funny Games will be completed by the end of June and looks set to premiere at a major autumn festival.