The former Harry Potter actress would play Mia, an aspiring actress in LA, in the film, titled La La Land.
Chazelle has described the film as "like Gene Kelly meets Thelonious Monk", and told the Daily Telegraph that he has been working on the project for "five or six years".
La La Land will also star Miles Teller, returning to work with Chazelle after his turn as a drummer in Oscar-nominated Whiplash. He will play an aspiring jazz musician in the film.
Chazelle added that the musical is in an "original MGM-style", and his musical collaborator on the film is Justin Hurwitz, who also composed the score of Whiplash.
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