"Peterloo" will be the director's first big screen project since 2014's "Mr Turner", reported Digital Spy.
"There has never been a feature film about the Peterloo Massacre. Apart from the universal political significance of this historic event, the story has a particular personal resonance for me, as a native of Manchester and Salford," the 72-year-old director said.
Set in 1819, the film will be based around the events where the British government invaded a peaceful protest in St Peter's Field, Manchester.
The infamous attack left around 15 people dead and over 700 protesters wounded.
"Peterloo" will see the BAFTA Award-winning director once again join up with the team behind 2014's "Mr Turner" with Georgina Lowe, Gail Egan and Helen Grearson all on board as producers.
Leigh is currently directing English National Opera's "The Pirates of Penzance.
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