The Butler director is meeting with The Weinstein Company regarding the long-gestating, untitled project, according to The Hollywood Reporter.
Michael B Jordan, Marlon Wayans and Eddie Murphy are among the actors being considered for the film.
Wayans and Murphy have both been attached to the project at different times over the years, although Fruitvale Station's Jordan is said to be the frontrunner.
Much of the film will focus on the influential stand-up comedian's 30s.
His widow Jennifer Pryor will serve as a producer on the project, and has offered a glimpse inside her late husband's personal journals.
The Weinstein Company became engaged in a legal battle with Warner Bros last year over the former's use of 'The Butler' as the title of Daniels's film. It was eventually renamed Lee Daniels' The Butler.
Watch a trailer for Lee Daniels' The Butler below: