Chiang's story was published in 1998 and won the Nebula for best novella amid a slew of nominations, garnering praise for tacking the theme of language and free will.

PHOTOS: Todd McCarthy's 10 Best Films of 2013

The story is set in motion when alien crafts land around the world and an expert linguist is recruited by the military to determine whether they come in peace or are a threat. As she learns to communicate with the aliens, she begins experiencing vivid flashbacks that become the key to unlocking the greater mystery about the true purpose of their visit.

Heisserer is also executive producing.

Aaron Ryder and Karen Lunder will oversee production of the film on behalf of FilmNation, while Tory Metzger shepherds on behalf of Lava Bear. Levine and Dan Cohen are 21 Laps' spearheaders.

The goal is to shoot later this year.

STORY: Oscar Reactions: What the Nominees Are Saying

Villeneuve is the French-Canadian director who was behind the Canadian films Polytechnique and Incendies, which was nominated for an Oscar in the best foreign film category. He is known for his thoughtful tackling of tough subject matters.

He became Hollywood's new hot director and go-to guy for complex thrillers after Prisoners, the thriller starring Hugh Jackman and Jake Gyllenhaal, garnered much critical praise when it was released last September.

Villeneuve is repped by CAA.