The Kung Fu Panda director's involvement has laid to rest speculation that the studio had axed the long-discussed project.
According to The Hollywood Reporter, Joel Silver will produce through his Silver Pictures banner, while Mattel's Barry Waldo will executive produce.
Based on the 1980s Mattel toy franchise, the storyline will follow He-Man's alter ego Prince Adam on a quest to find his destiny. Along the way, he will stumble upon the magical place of Eternia where he finds the evil Skeletor has raised a technological army intent on eradicating all traces of magic.
"Masters Of The Universe was a billion-dollar franchise for us in the '80s," said Waldo. "There are so few of those in the vault; it's one of the crown jewels."
Justin Marks has penned the first draft script, tentatively titled Grayskull.
The 1987 film starring Dolph Lundgen as He-Man and Frost/Nixon star Frank Langella as Skeletor is the only other live-action version of the character.