The project focuses on two police officers who use prisoners to get information about difficult cases, Deadline reports.
The project has reportedly received a script commitment from Fox.
Yard Dogs comes from Brian Koppelman and David Levien, who have previously collaborated on movies such as Ocean's Thirteen and The Illusionist.
Fox is currently working on a number of new shows, including a drama about employees at a cosmetics company, a project from Fight Club writer Jim Uhls and a series about a female CIA agent.
The network is also developing some comedies, with a Tyler Labine sitcom and a project called Gorilla Time both in the works.