The 46-year-old actress will produce the movie through her On the Day Productions, along with husband Ben Falcone, according to The Hollywood Reporter.
The story is based in a world where humans and puppets coexist, with the puppets viewed as second-class citizens.
When the puppet castmembers of 1980s children's TV show 'The Happytime Gang' begin turning up dead, an alcoholic, disgraced LAPD detective turned private-eye puppet takes the case with his former human partner.
"When a really good script combines puppet strippers, Los Angeles' underbelly and comedy, it's like my fever dream has finally come true," McCarthy said in a statement.
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