The Solution Entertainment Group and Goalpost Pictures Australia have announced the movie, which has also been written by the Warrior actor, according to The Hollywood Reporter.
Matthew Saville (Noise) is attached to direct the thriller.
Felony centres around a decorated police officer who, when driving home after celebrating a successful and high-profile drugs bust, knocks a young cyclist down.
When other officers arrive, he makes a split decision to lie about the incident that has major repercussions for more than just himself.
The film will be distributed by Roadshow Films in Australia and New Zealand, and will debut to foreign buyers at the Cannes Film Market this week.
Edgerton was last seen in The Thing and is in line to appear in Kathryn Bigelow's Bin Laden movie Zero Dark Thirty, The Odd Life Of Timothy Green and Baz Lurhmann's adaptation of The Great Gatsby.
Shooting on Felony will begin in October.