The cable network has teamed with writer / exec producer S. Craig Zahler on the project, Deadline reports.
Downtown Dragons is set in Chinatown, New York and focuses on the rivalry between two gangs.
Following a bloody shootout, the use of firearms is banned by Triad bosses and the battling mobsters must use traditional martial arts skills to defend their territories.
Zahler has also written detective movie The Big Stone Grid, which is to be directed by Michael Mann, and Western film The Brigands of Rattleborge, which has attracted the attention of Oldboy helmer Chan-wook Park.
Other projects currently in development at FX include a crime drama from rapper and music mogul Dr Dre and the long-gestating Powers, based on the Brian Michael Bendis comic.
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