Steiner Studios Chairman Douglas Steiner joined New York Gov. George Pataki and New York City Mayor Michael Bloomberg in making the announcement.
The movie will feature Matthew Broderick and Nathan Lane, the original stars of the Tony-winning Broadway production, along with Will Ferrell and Nicole Kidman. It will be directed by Susan Stroman, who won a Tony for directing the Broadway production.
It's the first major film project announced for Steiner Studios, which will open for business this fall on a 15-acre site at the historic Brooklyn Navy Yard.
The 280,000-square-foot studio is billed as a state-of-the-art facility that can handle major motion pictures, independent films, television, music videos and commercials.
Steiner Studios expects to generate as many as 1,000 new jobs for the region.
"We built a massive, state-of-the-art facility," said Steiner. "Now with the new state film tax credit ... we have everything in place for producers to make all of their movies in the greatest city in the world."