Barbra Streisand and Joel Silver – the latter making his first foray into Broadway musicals – are adapting the project for the studio.
Streisand will portray “Momma Rose” in a return to musical film since her 1983 production Yentl.
Stephen Sondheim and Arthur Laurents wrote the Tony Award winning Gypsy, which launched on Broadway in 1959 and is based on the memoirs of striptease artist Gypsy Rose Lee.
Fellowes won the Academy Award for original screenplay for Gosford Park and recently earned Golden Globe and Emmy nominations for Downton Abbey.
He previously adapted the script for Disney’s stage production of Mary Poppins for the stage.