The pair will star in Roxanne director Fred Schepisi's romantic comedy, reports ComingSoon.net.
Set in an isolated New England prep school, the film centres around a charismatic English teacher (Owen) and highly private art teacher (Binoche), who complicate their lives with an unlikely liaison.
The movie will be produced by Latitude Productions' Curtis Burch alongside screenwriter Gerald DiPego.
"When I first read this uniquely romantic screenplay by Gerald DiPego, based on his original concept, I knew I had to acquire it as Latitude's first project, as it is an enchanting love story coloured with a sophisticated humour and would be ideal for Fred Schepisi to direct," said Burch.
"It was with Fred's commitment that we were able to attract Clive and Juliette, who are a perfect fit to create the chemistry between the two leads at the heart of the story. I am also very excited to be working alongside Lascaux Films to bring this movie to the screen."
Owen was most recently seen with Nicole Kidman in the HBO film Hemingway and Gelhorn. He will next be seen in Blood Ties and is currently filming The Last Knights.
Binoche last appeared in Certified Copy and will next star in An Open Heart and La Creatrice.
Filming on Words and Pictures is scheduled to begin in March 2013.