Set in north-east Scotland, the film centres on Chris Guthrie (Deyn), the eldest daughter of poor farmers finding love before the start of World War I.
Deyn said: "When I read the script I fell completely in love with the character and the story, I'm so honoured and excited to be working with Terence, he's such an incredible director.
"I can't wait to get started and just hope that I can do Chris Guthrie justice!"
Fortissimo Films announced today (May 16) at Cannes that it had acquired the international rights to the project from the director of last year's The Deep Blue Sea.
The company's Courtney Noble said: "Terence Davies is a true visionary and Fortissimo has admired and wanted to work with him for almost 20 years.
"We are delighted and honoured to be involved with him and his production partners on Sunset Song."
The film is an adaptation of the 1932 novel of the same name by Lewis Grassic Gibbon, and marks Fortissimo's return to British films.
Executive producer Bob Last added: "After The House of Mirth, I was determined to make another film with Terence. He is such a cinematic master, with a vision that is at one and the same time richly beautiful and austere.
"Lewis Grassic Gibbon's intimate epic seemed perfectly suited; a powerful story of love and loss set against the onset of modernisation, a theme that continues to resonate in today's rapidly-changing world.
"The opportunity to bring Peter Mullan and Agyness Deyn together with Terence and to work with the team that produced his Of Time and the City could not be missed."
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