The actor, who voices Donkey in the Shrek franchise, will appear in the update of the classic 1970s cartoon centring around janitor Penrod "Penry" Pooch, who secretly becomes a martial arts superhero called Hong Kong Phooey.
Alcon Entertainment's Broderick Johnson and Andrew Kosove revealed: "We could not be happier that Eddie Murphy will star as Phooey.
"There is no overstating his contributions to cinema, and to such enduring stars of family entertainments such as Shrek and Dr Doolittle. We look forward to watching him re-imagine yet another classic character."
The movie will be a live-action and animation hybrid, in the same style as 2010's Yogi Bear.
Murphy recently revealed that he will not appear in any Shrek sequels in the future.
Watch the intro to the original Hanna-Barbera cartoon series Hong Kong Phooey below: