The film, which starred John Cusack and Dianne Wiest, was about a playwright struggling to put on his first play amidst threats from a mobster who wants him to cast his girlfriend in the show.
Set during the 1920s, the film is full of jazz and vaudeville music of the era. Music in the show will be from already existing standards of the time, Entertainment Weekly reports.
It won seven Oscar nominations, including a 'Best Supporting Actress' win for Wiest.
Allen now hopes to adapt the story for the stage, and is writing the script adaptation.
Woody Allen's latest film Midnight in Paris, which is also partly set in the 1920s, has been nominated for a 'Best Picture' Oscar award. It stars Owen Wilson, Rachel McAdams and Kathy Bates. The film is the highest-earning movie in Allen's long career.
Wach the trailer for Midnight in Paris below: