The supernatural thriller is based on an original story by Shyamalan that Quarantine director John Dowdle and Andrew Dowdle will direct. Production is set for 2009.
Shyamalan and Sam Mercer are producing and the directors will serve as executive producers. Brian Nelson, whose credits include Hard Candy and 30 Days Of Night, wrote the screenplay.
Devil is the first of three features to come from The Night Chronicles, all of which will be based on original ideas by Shyamalan.
'This is a dream for me,' Shyamalan said. 'I wanted to find film-makers that inspire me and I found them. Brian is a perfect fit for Devil and the Dowdle Brothers are just fantastic storytellers. These guys are the next wave.'
Shyamalan will co-own the films' copyrights and retain artistic control and MRC will find distribution.