The Oscar-winning actor will portray with former British prime minister in 'Captain of the Gate', according to The Hollywood Reporter.
The film will tell the tale of how the popular wartime leader - who was prime minister of Britain from 1940 to 1945, and again from 1951 to 1955 - stood against British parliament to defend the country from Nazi tyrant Adolf Hitler in World War II.
The movie will be financed for around $20 million and will be produced by Sierra/Affinity. StudioCanal, which is behind the recent hit Liam Neeson film 'Non-Stop', is also in talks to come aboard as a producer.
The script comes from Ben Kaplan, who has previously written a TV documentary on US president Ronald Reagan.
Spacey is no stranger to the political sphere as he currently stars as unscrupulous politician Frank Underwood in Netflix's smash hit drama 'House of Cards'.
The role has led to critical acclaim, including Emmy and Golden Globe Award nominations.
Spacey previously earned an Oscar for Best Actor for 'American Beauty', and a Best Supporting Actor prize for 'The Usual Suspects'.