The Spanish filmmaker wrote and directed the short films, "La Guerra" and "Limoncello."
Costner is best-known for his roles in "Field of Dreams" and "Dances with Wolves." He was most recently seen in "Mr. Brooks" and "The Upside of Anger."
In his new film, Costner will play John James, a single father who moves his two kids to a farm after a painful divorce. Just as they are settling in, his daughter starts behaving oddly and John begins to wonder if the burial mound in a nearby field might have something to do with it, The Hollywood Reporter said Wednesday.
Ivana Baquero of "Pan's Labyrinth" will play the daughter in the film based on a short story by John Connolly.
Principal photography is slated to begin early next year, the trade paper said.