The 'Ocean's 8' star has been offered a starring role in the film, according to Variety. However, no papers have been signed yet.
If she gives her nod, this would mark Hathaway's second foray into the 'Sesame Street' world, as the 36-year-old previously appeared in the holiday special 'Elmo's Christmas Countdown' in 2007.
Set to be helmed by 'Portlandia' co-creator Jonathan Krisel, the upcoming live-action movie is said to be a musical.
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