McDonagh won the 2006 Oscar for his short film "Six Shooter," starring Irish actor Brendan Gleeson.
"In Bruges," a tale of two hit men forced to take a holiday in Bruges, Belgium, stars Gleeson and Colin Farrell. It will screen at Sundance Jan. 17, Variety.com reported Tuesday.
"In many ways, 'In Bruges' is a quintessential Sundance film -- it's brutal, philosophical, funny and totally original," said Sundance director Geoffrey Gilmore.
"No filmmaker I know has made the English language, in all its profane -- and here, quite Celtic -- glory, such a purely, joyously cinematic medium," said James Schamus, chief executive officer of Focus Features.
McDonagh's stage works include "The Lieutenant of Inishmore," "The Pillowman" and "The Beauty Queen of Leenane."