'Oculus' director Mike Flanagan is helming the project from a script that was co-written by him and Jeff Howard.
The film, which begins shooting next weekend, revolves around an orphaned child, whose dreams and nightmares manifest physically as he sleeps.
Bosworth and Jane will play the child's parents, said the Hollywood Reporter.
'Oculus' was about a horrifying family incident that left two young children orphans a decade earlier.