The actor has signed on to Ryan Fleck and Anna Boden's Mississippi Grind, according to The Hollywood Reporter.
The film centres around a down-on-his-luck gambler who teams up with Gyllenhaal's younger gambling addict in a bid to turn his fortunes around.
The pair set off on a road trip with hopes of making their fortunes.
Fleck and Boden will direct the film from the screenplay they wrote.
Gyllenhaal will next be seen in End of Watch and later in An Enemy.
Fleck and Boden most recently helmed It's Kind of a Funny Story with Zach Galifianakis.