Seth Rogen is also one of the stars of the movie and is co-producing it, said The Hollywood Reporter.
The film is based on a 2013 book of the same name, by Greg Sestero and Tom Bissell. The book is about the making of 2003 drama "The Room", widely considered one of the worst movies of all time. Sestero starred in the movie.
"The Disaster Artist" is planned as a buddy comedy about two outsiders who embark on a delusional journey to make their dreams come true.
Wiseau had no filmmaking experience when he set out to write, direct and produce "The Room", which centres on a man named Johnny whose fiancee, Lisa, cheats on him with his best friend, Mark.
Dave Franco is playing Sestero, the actor who played Mark in Room. Efron, 28, will play a drug dealer. The movie began shooting Monday in Los Angeles, adding Ari Graynor, Jacki Weaver, Hannibal Buress and Andrew Santino.
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