The Inception actor will play a British paratrooper captured with his unit in an isolated farmhouse, where a Jewish couple are hiding unknown to the German captors, Variety reports.
According to the site, Michael Gambon is also negotiating a role in the film, which is being helmed by Boy Eats Girl director Stephen Bradley.
Gambon is currently starring in the HBO horse-racing drama Luck.
Production will begin in August, with shoots in Paris and Tel Aviv.
Murphy will next be seen in the British thriller The Retreat which also stars Thandie Newton and Jamie Bell.