The movie is directed by Ace Norton and is based around a mysterious virus outbreak at an isolated elementary school that transforms its pupils into a gang of savages.
Cooties is based on a screenplay by Saw scribe Leigh Whannell and Glee co-creator Ian Brennan, with Wood overseeing the project for his new production company The Woodshed.
The Lord of the Rings actor will star as the leader of a motley band of teachers, who must fight to survive when the infected school children run amok.
Wood will revisit his Lord of the Rings role of Frodo Baggins in The Hobbit: An Unexpected Journey, scheduled for release on December 14, 2012.
Cooties will begin filming in April next year.
Watch The Hobbit: An Unexpected Journey trailer below: