The film, which has been written by Peep Show scribe Jesse Armstrong, is set in the future as patriarch Rupert Murdoch is dying.
The drama follows what happens at a family dinner party when the relatives fight about who should take over News Corp, The Guardian reports.
Armstrong, who described the film as "Dallas meets Festen", explained that the entire Murdoch family is featured.
The Murdochs was originally pitched to Channel 4 around two years ago but the broadcaster's former director of TV Kevin Lygo rejected it amid fears that it was too "media-centric".
However, the channel is now said to be reviving the project following the phone hacking scandal at the News of the World, which is owned by News Corp.
Channel 4's head of drama Camilla Campbell confirmed that the drama is in "active development", adding: "For me it never really went away, but with the stories about hacking I think the time could be right to make this."
Yesterday, David Cameron promised a public inquiry into the allegations of phone hacking by the News of the World.