Zach Braff, who helmed the Kickstarter-funded comedy "Wish I Was Here", will direct from Ted Melfi's script, reported Variety.
The original movie, which starred Burns, Art Carney and Lee Strasberg, followed three retirees who wore Groucho Marx glasses to execute a bank heist.
Directed by Martin Brest, the film was a solid performer for Warner Bros, reportedly grossing USD 30 million at the box-office.
The new version will centre on three retired men, who lose their pensions when the company they have worked for their entire lives is sold to a foreign corporation.
Dillon, 51, will play the FBI agent who pursues the trio. Ann-Margret will portray the love interest of Arkin's character.
Filming recently began in New York City. Warner Bros-based Donald De Line is producing while Tony Bill, who produced the original film, is exec producing.
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