According to deadline.com, a deal is close to being set for the Universal Pictures film. Joel Silver would produce with Streisand still set to star.

Deadline also reports the project still has the approval of the show's lyricist, Stephen Sondheim, and its librettist, Arthur Laurents. Laurents previously told the New York Post that he had approved Streisand to star in the project after conversations with her, but later told the Hartford Courant that he had withdrawn his permission after talking to Sondheim about the lack of need for a definitive film record for the iconic musical theatre piece.

The new film deal reportedly gives Laurents and Sondheim approval over the film's screenwriter, director and choreographer, as well as who would play the key roles of Louise (Rose's older daughter, who becomes the famous stripper Gypsy Rose Lee) and Herbie. Neither Streisand nor "The King's Speech" Oscar winner Tom Hooper, whom Laurents had told the Courant was interested in directing, are slated to direct the film.

Laurents directed Streisand in her Broadway debut in I Can Get It For You Wholesale and wrote the screenplay for "The Way We Were" for her. He has also directed three Broadway revivals of Gypsy. Streisand confirmed her Broadway stardom with Funny Girl, which features music by the late Gypsy composer Jule Styne, and has frequently recorded Sondheim's songs and performed them in concert.