Steven Spielberg set to direct Roald Dahl's 'The BFG' adaptation

Steven Spielberg is set to direct the adaptation of Roald Dahl's famous children's book 'The BFG' for DreamWorks.

The live-action film, which will be based on the fantastical tale of a Big Friendly Giant who befriends a young orphan girl, will be produced by Kathleen Kennedy and Frank Marshall, The Hollywood Reporter reported.

A source said that the flurry of announcements counters "the perception that Spielberg is out of business, as DreamWorks CEO Stacey Snider is going to Fox and Dreamworks will also be going away.