The film's producers are Mayhem Pictures' Mark Ciardi and Gordon Gray, who have been behind movies of the same genre such as Miracle, Invincible and Secretariat.
Whale Rider director Niki Caro is attached to direct the project based on a true story.
The plot revolves around a 1980s small-town high school track coach - the role marked out for Costner - who put together a team that overcame social and physical difficulties to become champions, according to The Hollywood Reporter.
The film is said to have a budget of $17 million.
Costner has previously had big hits with sports movies Tin Cup and Field of Dreams.
Watch a trailer for Field of Dreams below: