According to Vulture, the two parties are looking to hire commercials helmer Michael Gracey to direct The Muppet Man, which combines conventional biopic elements with fantasy sequences involving Henson's Muppet characters.
The film will be based on a script by Australian writer Christopher Weekes, whose Muppet Man screenplay topped the 2009 'Black List', the annual rundown of the top unproduced stories in Hollywood.
Gracey's ad work includes the Evian promo of roller-skating babies. The commercial has been watched more than 45 million times online and is the fifth most-popular video on YouTube.
Disney recently hired Flight Of The Conchords's James Bobin to direct its untitled Muppet movie.