Lehane is known for several books which have been adapted for the screen, including Mystic River, Moonlight Mile and Gone, Baby Gone.
According to Deadline, the project has been acquired to serve as a star vehicle for Leonardo DiCaprio, who starred in Shutter Island, another Lehane adaptation.
DiCaprio and his partner Jennifer Davisson Killoran at Appian Way Productions will also be producing the movie in conjunction with Warner Bros.
At the moment, Leonardo DiCaprio is filming Quentin Tarantino's Django Unchained.
He will next be reuniting with Martin Scorsese on The Wolf of Wall Street.
Live By Night is set for release online and in bookstores on October 2.
Watch Leonardo DiCaprio in the trailer for the adaptation of Dennis Lehane's Shutter Island below: