The movie version of the Victor Hugo novel will be directed by Tom Hooper, who won an Oscar for The King's Speech earlier this year.
X-Men and Australia actor Jackman will play protagonist Jean Valjean if a deal is completed, according to The Hollywood Reporter.
The Da Vinci Code actor Paul Bettany is in the frame to play police inspector Javert, according to Deadline.
Cameron Mackintosh, who adapted the original French musical version of Les Misérables for the West End, will produce the movie alongside Working Title's Tim Bevan and Eric Fellner.
Jackman has a number of credits in musical theatre and first became known outside Australia when he played Curly in a West End production of Oklahoma! in the late 1990s.
He also received a Tony Award in 2004 for his portrayal of singer-songwriter Peter Allen in The Boy From Oz.
Jackman appeared in a one-man show at San Francisco's Curran Theatre last month, performing a selection of his favourite songs from musicals.
It is thought that filming on the project will take place in Europe later this year.
Watch Hugh Jackman's duet with Neil Patrick Harris at the 2011 Tony Awards below: