Tom Hanks and Gary Goetzman's Playtone will join him to bring the tale of the former Russian Premier to the screen, reports Deadline.
Mikhail Gorbachev will himself serve as a consultant on the film, which views the dissolution of the USSR through his eyes.
DiCaprio and Gorbachev previously met when the former was working on documentary The 11th Hour.
Former Hell on Wheels showrunner John Shiban will write the script.
At the same time, Mike Newell is working on Reykjavik, a film which dramatises the former president's 1986 meeting with Ronald Reagan in Iceland's capital.
DiCaprio and Hanks previously worked together on Catch Me If You Can.