Composer Danny Elfman, known for his work with director Tim Burton, will write the music for the stage show. New York-based radio presenter and former magazine editor Kurt Anderson is working on a script.
According to Fox News, Jackman, who portrayed a magician in The Prestige, will perform some of Houdini's tricks and escape acts on stage. Producers are considering bringing in Cirque du Soleil and David Blaine to act as advisers on the musical.
Jackman has previously appeared on Broadway playing Australian songwriter Peter Allen in The Boy From Oz.