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Production will begin next month in Paris under the direction of Anne Fontaine. Fontaine co-wrote the script with Camille Fontaine and Christopher Hampton.
Audrey Tautou has been signed to portray Chanel, who was credited with revolutionising women's fashion in the 20th century.
The director said in a statement: "Audrey Tautou embodies all the qualities that made Coco such a fascinating individual, and the support we've received from The House of Chanel is incredibly gratifying."
Chanel's art director Karl Lagerfield will supervise the recreation of the film's wardrobe.
Movie Reviews
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At the Movies
John Williams's top 10 movie scoresAs John Williams celebrates his 80th birthday, we take a look at his 10 best movie scores.
Movies Interviews
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Box Office Charts
'Chronicle' leads UK box officeSuperhero drama Chronicle leads the UK box office ahead of Journey 2.
