The low budget British film has been written and will be produced by Philip Milne.
Danny Dyer is set to star in the new film Daementia, directed by John Rackham.
Philip Milne has written the script about a man who is put in a psychiatric hospital after witnessing a murder that has supernatural connections.
The film will also star Tom Bott, George Iriving, Kim Sønderholm, Chris Luca and Caroline Burns Cooke.
Shooting is due to get underway early next year in London.
Milne will also produce for Richard Leonard Film & Theatre Ltd on a budget of around £600,000.