The actress will spearhead the movie via her production company Handsome Charlie Films, which she co-owns with Annette Savitch, according to Bloody Disgusting.
David Gordon Green (Pineapple Express) recently revealed that he is attached to direct.
The original 1977 film centred on a young American dancer who travels to Germany to join a famous ballet Academy. However, she eventually discovers that the school is staffed by a coven of witches.
Entertainment Weekly has said the movie contains "the most vicious murder scene ever filmed".