The story delves into the world of espionage, terrorism and big business through the eyes of a ruthless MI5 agent.
The $15m film's cast will include Thandie Newton, who will play a high-class call girl. The rest of the cast is being negotiated now for a shoot in the second quarter of 2008.
Shani Hinton, who has worked with Woody Allen and Nick Broomfield, will produce.
Fiennes, who previously directed Onegin and Chronophobia, said: 'We are inspired with confidence at how Intandem has understood our creative vision and the sophistication of the story.'
Gary Smith, chief executive of Intandem, said: 'This is one of many outstanding projects that is elevating Intandem into a major supplier of quality, commercial films. We are thrilled to be working with Martha, who is a really creative talent, and the cast that this project is attracting.'