The six-part gangster drama has been written by Steven Knight (Eastern Promises).
The series follows ruthless mobster Tommy (Murphy), whose family control the "lawless post-war slum neighbourhoods" of Birmingham in 1919.
Tommy's family are known as the 'Peaky Blinders' due to their practice of sewing razor blades into the peaks of their caps, Deadline reports.
When a Belfast police chief challenges the crime family's reign, Tommy finds his leadership under threat.
Murphy is best known for his film credits, including Christopher Nolan's Batman films and 2002's 28 Days Later. His last television role was in 2001 BBC mini-series The Way We Live Now.
Peaky Blinders - directed by Otto Bathurst (Black Mirror) - will begin shooting in September and will air on BBC Two in 2013.
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Watch Cillian Murphy speak to Digital Spy about his movie Red Lights below: