Miles's son Erin Davis and Vince Wilburn Jr, who are heirs to the estate, revealed to Wall Street Journal that Fuqua is helming the project.
Born in Illinois in 1926, Miles came to prominence in the music world as a jazz musician and composer, winning numerous Grammy awards along with the Grammy 'Lifetime Achievement Award' in 1990, one year prior to his death.
Miles eventually got his star on the Hollywood Walk of Fame in 1998 and was inducted into the Rock and Roll Hall of Fame in 2006.
Cheadle, who stars in Showtime's series House of Lies, will reprise his role in the third instalment of Iron Man opposite Robert Downey Jr.
Iron Man 3 is expected to roll out to cinemas in May 2013.
Watch Erin Davis and Vince Wilburn Jr's interview with the Wall Street Journal below: