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The Ecosse Films project takes place on V.E. Day in 1945 and sees princesses Margaret and Elizabeth sneak out of Buckingham Palace to join the celebrations.
The Last Station's Michael Hoffman is directing the film from Trevor De Silva's script, which is inspired by actual events.
Producers are still searching for an actress to take on the role of Margaret's elder sibling Elizabeth. The princess ascended to the throne in 1952 as Queen Elizabeth II following the death of her father King George VI.
Fanning recently starred as Cherie Currie in The Runaways and can next be seen in Breaking Dawn.
More: Dakota Fanning, Movies
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