Rex Features
The unnamed project follows "the Master", a charismatic and intelligent man (Hoffman) who leads a popular faith-based organisation in America in 1952, reports Variety.
The film will examine the relationship between Hoffman's character and a 20-something drifter named Freddie, who finds himself questioning the Master's belief system.
Anderson, who was nominated for a 'Best Director' Oscar for 2008's There Will Be Blood, has collaborated with Hoffman on a number of films, including Boogie Nights, Punch-Drunk Love and Magnolia.
The new project is awaiting a greenlight from Universal.
