Producers Stephanie Thorpe and Paula Rhodes have picked up the rights to the comic series after Warner Bros dropped the project, reports Variety.
Elfquest began life as a self-published title in the 1970s before being picked up by Marvel Comics. More recently, DC Comics held the rights to the property.
Created by Wendy and Richard Pini, the story follows a tribe of elves on the World of Two Moons, who discover the existence of another elf tribe after being driven from their home by humans.
Rawson Marshall Thurber was previously attached to direct the film for Warner, but the studio pulled the plug as the project was deemed too thematically similar to its Hobbit trilogy.
A cast and director for ElfQuest are yet to be announced.