The Never Let Me Go star will play the female lead in Nicolas Winding Refn's upcoming sex thriller, according to The Hollywood Reporter.
The Drive director first announced the project in 2009, telling The Playlist that he had long wanted to make a film with lots of sex.
"I wrote this story called I Walk With the Dead and it takes place in Miami and it's just going to have a lot of sex in it," Refn said. "I have two films that are getting made with French investors and one is Only God Forgives and one is I Walk With the Dead."
Mulligan is due to begin filming The Great Gatsby alongside Leonardo DiCaprio and Tobey Maguire. She will play Daisy Buchanan.
In July, the actress confessed that she is terrified of the role, which she landed in November of last year.
Watch the trailer for Drive below: