The movie centres on two teenage girls, one of whom transforms into a werewolf when her desires overpower her. Juno Temple and Riley Keough are attached to play the eponymous characters.
An insider said of Minogue's role: "Kylie does have one love scene where she kisses a girl. Her fans will be surprised to see her in this role, but her performance is good."
Bradley Rust Gray will direct the New York-set Jack And Diane.
Minogue's last major feature film role was in 2001 musical Moulin Rouge. The popstar has also appeared in Street Fighter and Bio-Dome.