Skinny and Cat will mark the legendary singer and actress's return to the director's chair after 16 years, reports the Los Angeles Times.
The film will be based on the true story of the romance between writer Erskine Caldwell and photojournalist Margaret Bourke White.
The pair collaborated on the book You Have Seen Their Faces - documenting the American South during the Great Depression - as well as North of the Danube and Say, Is This the USA.
Streisand directed The Prince of Tides and Yentl, in both of which she starred. Her most recently helmed feature film was 1996's The Mirror Has Two Faces.
She has been rumoured for the big-screen remake of Gypsy, as well as starring in The Guilt Trip with Seth Rogen.
Watch the trailer for Cate Blanchett's next film The Hobbit: An Unexpected Journey below: