The Australian actress, who has appeared in movies such as Elizabeth and The Curious Case of Benjamin Button, has agreed to helm a big-screen adaptation of Tim Winton's short story collection The Turning.
Alice in Wonderland actress Mia Wasikowska and Lord of the Rings star David Wenham have also signed on to direct segments of the film, according to The Daily Telegraph.
Also involved are Snowtown director Justin Kurzel, theatre director Benedict Andrews and choreographer Stephen Page.
Screen Australia boss Ruth Harley said: "Winton's iconic Australian short stories will come to life, showcasing acclaimed Australian talent as well as emerging directors, writers and producers."
The Slap and Balibo's Robert Connolly has reportedly signed on as the producer.
> Cate Blanchett "frightened" by the idea of plastic surgery
> AACTA Awards in pictures: Geoffrey Rush, Cate Blanchett, more
Watch Cate Blanchett in the trailer for The Curious Case of Benjamin Button below: