According to Variety, the untitled pitch has been sold to Paramount, and centres on a Bond-like spy who is forced to go on the run with his brother, a moronic football hooligan.
Baron Cohen reportedly developed and sold the pitch alongside Cedar Rapids screenwriter Phil Johnston, and the pair will now co-write the script.
The central spy will not be overtly referred to as Bond, owing to rights issues, but he will apparently "bear a resemblance" to the iconic spy.
A defamation lawsuit relating to Baron Cohen's 2009 comedy Bruno was settled last month.
Watch a trailer for Baron Cohen's last film The Dictator below: