Wiig will play the female lead with "The Martian" co-star Matt Damon, after Witherspoon had to leave the project due to scheduling issues, reported the Entertainment Weekly.
The film's story apparently revolves around an Omaha man (Damon) who takes part in the new trend of people shrinking themselves down and moving to tiny communities. Christoph Waltz and Hong Chau will also star in the movie.
Payne, who last directed Nebraska, wrote the film with frequent collaborator Jim Taylor.
Wiig will next be seen in Sony's "Ghostbusters" reboot.
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