The Hollywood Reporter also states that Pulitzer Prize winner Michael Chabon is in discussions to work on the Disney project, which has been in development since 2004.
Michel Hazanavicius, who directed the Academy Award-winning "The Artist," will direct.
No casting has been announced, although Tom Cruise is reportedly interested in the film, which concerns "a regular guy who, after a blow to the head, suddenly can hear the inner songs of everyone’s heart as his reality is instantly turned into a musical, much to his dismay."
Producers, according to the industry source, include Tripp Vinson, Chris Bender, JC Spink and Beau Flynn.
Among those who have contributed to the script throughout its time in development are Mike Bender, John August, Lowell Ganz and Babaloo Mandel. Oscar winners Robert Lopez and Kristen Anderson-Lopez — the husband-and-wife songwriting team behind the international hit "Frozen" — were also previously attached to the project.