The film, based on the famous 1940 cartoon, is in works at the Disney with writer Chris Weitz penning the script, according to The Hollywood Reporter.
The 52-year-old director was in negotiations to direct the movie.
The story revolves around a wooden puppet who dreams of becoming a real boy.
Mendes most recent film was the James Bond instalment "Spectre," and he is currently directing the West End play "The Ferryman".
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