The film will be the directorial debut of Kula Shaker frontman Crispian Mills, with music video director Chris Hopewell also involved.
The Paul actor will play a crime novelist named Jack who becomes paranoid after researching Victorian serial killers. He then finds himself with an overwhelming fear of being murdered.
Pegg will be joined by Sheridan Smith, Amara Khan and Claire Higgins in the movie. It will be the first film funded by a new initiative to help small budget productions from Pinewood Studios.
The Spaced star will soon make a return to the Mission: Impossible franchise, which will apparently see him play a bigger role than in the previous instalment.
Pegg also recently revealed that the script for his latest film project The World's End should have a first draft in the near future.
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