The Hollywood Reporter said that Lee will not only star as the film's rocker lead, but also will take on producing duties on the comedy from writer J.D. Ryznar.
The 36-year-old TV actor, whose role as the title character on the popular NBC sitcom earned him a Golden Globe nod this year, will film the comedy beginning in May during his summer hiatus from "Earl."
Lee's previous film roles include offering his vocal talents to the Walt Disney animated film, "The Incredibles," and a trio of comedies from director Kevin Smith including "Mallrats" and "Chasing Amy."
The paper said that Lee will produce "Krater" alongside Scott M. Martin, who he previously worked with during 2000's "Almost Famous," in which Lee also portrayed a rock star.