Paramount Pictures has acquired remake rights to the Oscar-nominated film with Nicholson and Wiig attached to star, reported Variety.
Adam McKay, who recently directed "The Big Short" for the studio, will produce along with Wiig, Will Ferrell and Jessica Elbaum of Gloria Sanchez Productions.
Maren Ade, writer and director of the original "Toni Erdmann," will exec produce the remake along with producers Jonas Dornbach and Janine Jackowski.
Paramount is still looking to attach a director and writer.
The German film is nominated for best foreign feature at the Academy Awards on February 26 and was also nominated for Best Foreign film at the Golden Globes in January.
Sources said Nicholson, who turns 80 this year, was a huge fan of the original and approached Paramount's Brad Grey with the idea and Grey immediately worked with the team at Paramount to secure the rights.
The three-time Oscar-winner has been courted for a few films in recent years, including the Branch Rickey role in "42" as well as Robert Downey Jr's father in "The Judge," but passed on both.
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