The film set in 1926 is about Houdini and a Scottish woman he had an affair with played by actress Rachel Weisz, Moviehole.com reported Friday.
The script is being written by Tony Grisoni and Brian Ward and is expected to start shooting next year.
Pearce's next film, "The Proposition" -- written by singer/songwriter Nick Cave -- will be released in Britain in September.
He will also portray Andy Warhol in "Factory Girl" and a British film director in "Dangerous Parking."
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