Formerly titled American Bulls**t, the drama will reunite Russell with Christian Bale and Bradley Cooper, who starred in his The Fighter and Silver Linings Playbook respectively.
Louis CK is in talks to take on a key role in the period drama, according to The Hollywood Reporter.
Written by Eric Singer (The International), the drama is based on a real-life undercover sting operation, set up in the 1980s by a con artist working for the FBI.
Jeremy Renner and Amy Adams will also star in the as-yet-untitled film, with filming set to begin next month.
O Russell is nominated for 'Best Director' at this year's Oscars for Silver Linings Playbook, with the film also recognised in the 'Best Picture', 'Best Actor', 'Best Actress', 'Best Supporting Actor', 'Best Supporting Actress' and 'Best Adapted Screenplay'.
Watch a trailer below: