The Telegraph reports that "Pride and Prejudice" director Joe Wright will reunite with Knightley for the movie musical. Academy Award-winning actress Emma Thompson is penning the screenplay that includes additional material from Shaw's Pygmalion.

Knightly, who will star in the West End revival of The Misanthrope in December, was among the first names bandied about when the remake was announced in 2008. A Steady Rain's Daniel Craig has been mentioned as a candidate for Professor Henry Higgins.

"My Fair Lady" is produced by Cameron Mackintosh and Duncan Kenworthy. As previously reported, the creative team intends to film on location in London to give the film an authentic feel. According to a previous statement, producers hope to "dramatize as believably as possible for present-day audiences the emotional highs and lows of Eliza Doolittle as she undergoes the ultimate makeover, transforming under the tutelage of Professor Henry Higgins from a Cockney flower girl to a lady."

Knightley has appeared on screen in "Atonement," "The Duchess," "The Edge of Love," "Pride and Prejudice," "Bend It Like Beckham," "Domino" and the "Pirates of the Caribbean" series.

The musical was adapted for the screen in 1963, directed by George Cukor, and cast Audrey Hepburn as Eliza and Rex Harrison as Higgins. The film won eight Academy Awards, including Best Picture, Best Director and Best Actor.