The "Loving" director is also attached to pen the screenplay for the new version, reported Deadline.
The original movie, which was directed by Graham Baker, follows a racist cop (James Caan) who is forced to team with a new partner (Mandy Patinkin), a member of an alien race who was on a ship carrying 300.000 alien refugees known as the Newcomers.
The ship crashed on Earth years before the Newcomers assimilated into Los Angeles.
The film was successful enough to spawn a 1989 TV series. The title was a clever metaphor to explore racism, which seems timeless in relation to current racial politics.
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