It marks his second project with filmmakers Henry Joost and Ariel Schulman and producer Allison Shearmur through her banner with producer Anthony Katagas, said The Hollywood Reporter.
Their first collaboration, Dimension Films' Viral, is yet to set a release date.
"Nerve" tells the story of a high school student, who "finds herself immersed in an online game of truth of dare, where her every move starts to become manipulated by an anonymous community of 'watchers'.
Kelly, 26, has starred in films like "Beyond the Lights" and "Punk's Dead!".
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