Madden is expected to begin searching for the movie's leading man in the New Year.
Keira Knightley's much-speculated role as Eliza Doolittle is yet to be confirmed.
Filmmakers Joe Wright (Atonement) and Danny Boyle (Slumdog Millionaire) were previously attached to the Columbia Pictures project.
Duncan Kenworthy and Cameron Mackintosh are to produce the picture. They plan to shoot the update in London.
Madden was nominated for an Oscar in 1999 for Shakespeare in Love.