The actor is in line to star in Ted Melfi's comedy-drama, reports Variety.
The film centres around a 12-year-old boy who strikes up an unlikely friendship with the man next door when his parents are busy fighting through their divorce.
The retiree veteran is a gambling, hard-drinking and whoring misanthrope who learns as much from his new friend as the boy does from him.
The 20th Century Fox and Chernin Entertainment project is based on Melfi's script, which appeared on the 2011 Black List.
Murray was last seen in frequent collaborator Wes Anderson's Moonrise Kingdom and will next play President Franklin D Roosevelt in Roger Michell's period pic Hyde Park on Hudson.