The actor is to join The Hangover star Bradley Cooper in the film, who stars as Michael's opposite number and fallen angel Lucifer, Deadline reports.
Director Alex Proyas said: "It's a family saga, about a group of brothers, two in particular, who are on divergent paths, and Lucifer's feelings of betrayal by his father and family that forge his descent into evil."
Paradise Lost centres on Lucifer's rejection from heaven, after which he launches his army in a personal battle against the forces of good.
Proyas, who previously directed I, Robot and Knowing, said: "[Walker's] deal isn't closed yet, but I think there's a wonderful duality about Ben's persona, this combination of great strength and perfect innocence that works so well for Michael."
The film has taken seven years to come into development and is expected to arrive on screens by the end of 2013.
"I don't think the visuals could have been done justice until now, which is the great fun of being a film director in this modern age of visual effects," Proyas added.
Walker recently finished shooting on Abraham Lincoln: Vampire Hunter, which sees the 16th president of the US battling vampires during the Civil War.