Universal is to distribute the rapper's directorial debut, titled The Man with the Iron Fist.
RZA also co-wrote the movie's script with Hostel director Eli Roth.
Roth will further produce the film, which casts RZA as a blacksmith who creates weapons for the residents of a Chinese village who are required to fight against dangerous forces.
"RZA has imagined every tribe, every fighting style, every costume. He knows kung fu like I know horror," Roth said.
Production is scheduled to begin in September.