New Line is in talks with Michael Bay, Brad Fuller and Andrew Form from Platinum Dunes to bring the series back to the screen following the success of 2003's The Texas Chainsaw Massacre.
The original 1984 film, which starred Robert Englund as child killer Freddy Krueger, spawned a host of sequels and was the studio's most successful franchise until Lord of the Rings.
It is not clear whether the new film will be a remake of the first or a re-imagining of the basic idea, although it is rumoured that it will include elements of Krueger's backstory.
A screenwriter will be hired when the Hollywood writers' strike is resolved.
Recent horror movies to be remade include The Hills Have Eyes and Halloween. Platinum Dunes also has a new version of Friday the 13th in the pipeline.