Brazilian-based movie company RT Features has acquired the rights to make a movie based on the 1975 record, which includes tracks such as 'Shelter from the Storm', 'Tangled up in Blue' and 'Simple Twist of Fate'.
According to AFP, the firm is currently looking for a director to helm the English-language movie after seeking rights from US production company Grey Water Park Productions.
RT Feature's senior vice-president Fernando Loureiro read a statement from chief executive Rodrigo Teixeira, saying: "As longtime admirers of one of the greatest albums in the history of music, we feel privileged to be making this film.
"Our goal is to work with a filmmaker who can create a classic drama with characters and an environment that capture the feelings that the album inspires in all fans."
Although Dylan has previously denied that his Blood on the Tracks album was autobiographical, critics have claimed that it reflects the collapse of his marriage.
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Watch Bob Dylan perform 'Simple Twist of Fate' live below: