The epic drama will be based on the works of legendary Hollywood scriptwriter Dalton Trumbo.
The piece, which lay in limbo for the past 50 years, has been rescued by modern-day writer Steve Zaillian, the man behind Schindler’s List.
Spielberg's movie will no doubt focus on the relationship Aztec emperor Montezuma and conquistador Hernán Cortés had during the time of the Spanish invasion of modern-day Mexico in the early 1500s.
The man chosen for the starring role is rumoured to be none other than Spanish cinema’s prodigal child, Javier Bardem.
In fact, according to Hollywood website Deadline, the Spaniard's central role in the movie could lead Spielberg to change the name from Montezuma to Cortez.
If Bardem is picked for the part, it will be the first time he has worked with Hollywood's most highly acclaimed director.