He is now helming the film as well as producing it, according to Variety.
Reports that Emma Watson is likely to star in the movie were also confirmed, with the Harry Potter star said to be in final negotiations for the part.
Little else is known about the project other than that it will be a period piece based on a treatment provided by del Toro.
Andrew Davies (The Three Musketeers, Bridget Jones's Diary) is working on the script.
Del Toro is currently working on sci-fi adventure Pacific Rim, which features Charlie Hunnam, Idris Elba, Charlie Day, Rinko Kikuchi, Max Martini, Willem Dafoe, Robert Kazinsky, Clifton Collins Jr, Diego Klattenhoff and Ron Perlman.
Pacific Rim - written by Travis Beacham (Clash of the Titans) - is due for release in 2013.
> Emma Watson is "perfect" for 'Beauty and the Beast'
> Guillermo del Toro: 'Pacific Rim will have finest monsters ever'