Universal's 1400 division is behind the new film, which is currently in pre-production, Entertainment Weekly reported.
The remake will see some big departures from the Ivan Reitman-directed original, which starred Schwarzenegger as a police officer who is forced to go undercover as a kindergarten teacher in order to catch a drug dealer before he can get to his ex-wife and son.
This time around, the title character will be paired with an Indian sidekick as the pair search for a missing flash drive from the Federal Witness protection programme that has ended up in a kindergarten classroom.
The "Kindergarten Cop" remake will be released straight to DVD.
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