The 49-year-old has teamed up with Disney to work on a new adaptation of Miguel de Cervantes' classic Spanish novel 'The Ingenious Gentleman Don Quixote of La Mancha', which he will co-produce with Infinitum Nihil's Christi Dembrowski.
The project is still in its early stages and the pitch for the as yet untitled film will be written by Steve Pink and Jeff Morris, reported Deadline.
The pair first teamed up on 'True Memoirs Of An International Assassin', which Morris scripted.
Depp harbours a known fascination for 'Don Quixote' and was previously on board to star in a Terry Gilliam film about the hero on a mission to revive chivalry, but the project never got off the ground.
It had been suggested Depp could also star in the new film, especially since he has brought huge success for Disney as kooky Captain Jack Sparrow in their "Pirates of the Caribbean" franchise.
Depp also recently wrapped "The Lone Ranger" for Disney and previously worked with production company Infinitum Nihil on "The Rum Diary".