The project had stalled after the studio was concerned about the potential $275 million (£174m) cost.
It is now expected to come in at around $215 million (£136m) following substantial cuts to the spending, Deadline reports.
Pirates of the Caribbean's Gore Verbinski will now remain to direct the big-screen version of the television series, after speculation over his departure. Verbinski and Depp reportedly lowered their fees in order to get the film greenlit.
Several expensive sequences have reportedly been dropped from the script and crew members have agreed to have their fees slashed to help lower the budget.
Depp and Armie Hammer are still in the two main roles, as Tonto and the Lone Ranger.
The Alice in Wonderland actor wants to reprise the role of the Lone Ranger's Native American sidekick in order to challenge racial stereotypes.
Production will begin in New Mexico next year, with Disney now scrapping its original December 2012 production date.