Brazilian-born director Henrique Goldman, who lives in London, will direct the project, which goes into production this summer. His partner in Mango, Luke Schiller, will produce and Stephen Frears has come on board as an executive producer. Brazil's TV Zero will co-produce.
Schiller said that the film-makers were working closely with de Menezes' family in Brazil and London to develop the story, which will be a $3.4m (£1.75m) feature-length factual drama intended for theatrical release. Schiller said its dramatisation of real events would be akin to a project like Paul Greengrass' United 93. The film-makers will also use archival material, including the huge funeral for de Menezes in Brazil.
Wagner Moura, who starred in Lower City, has been in discussions to play the lead role, depending on scheduling availability.
'It's a tragedy but it's also a celebration of the Brazilian joie de vivre in London,' Schiller said of the film. The project will cover about 12 months in de Menezes' life, from the time when his youngest cousin emigrates to London until his death.
Nitin Sawhney will compose the music, with Brazilian legend Caetano Veloso recording a specially arranged version of his song London London.
Mango also has another Brazilian-themed film in the works. Period drama Uprising is a character-led story that features Capoeira, the Brazilian martial arts/dance form. City of God director Fernandeo Meirelles will co-produce through his company 02 Filmes and the companies are in discussions with Hollywood studios on the 'medium budget' project.
That film will go into production in 2008, with Anthony Alleyne attached to write and Goldman attached to direct. 'It's weaving together 18th-century Brazil with Capoeira and runaway slaves. It's an amazing world that's never been on screen,' Schiller said.
Finally, Goldman and Schiller - who worked together on Ken Loach's Sweet Sixteen and also made the feature Princesa -- are developing Goodbye Muzungo, about an American aid worker whose eyes are opened in modern-day Zambia. That project is loosely based on Paul Theroux's true story Jungle Lovers and might shoot in South Africa with a South African co-producter. The budget will be around $5.8m-$7.8m (£3m-£4m). Brazilian financier Raul Schmidt will be executive producing that project as well as the de Menezes film.
Mango is in talks with a UK-based sales company about all three projects. Schiller recently moved back to the UK after working in Berlin for Wim Wenders' production company Road Movies.