Paranormal Activity producer Jason Blum and his Blumhouse Pictures will oversee the project's development, Deadline reports.
Sprawl's plot details are being kept under wraps, but the film is said to include thriller elements and is likely to be distributed by Universal Pictures.
Ellis is best known for directing Snakes on a Plane, as well as Final Destination 2 and the more recent Shark Night 3D.
The filmmaker signed on to direct a live-action version of Yasuomi Umetsu's 1998 anime feature Kite last year.
Sprawl is scheduled to begin production in early 2013.
Watch a trailer for Snakes on a Plane below: