Directors Ethan Coen (L) and Joel Coen (R), pose after winning the best picture award for "No Country for Old Men", at the 60th annual Directors Guild of America Awards on January 26, 2008 in Los Angeles. (UPI Photo/Jim Ruymen)

The Coens also made the current release "No Country for Old Men," which is nominated for eight Oscars and was based on Cormac McCarthy's book by the same name.

Variety.com said the brothers are to write, direct and produce "Union," after they wrap their next film "A Serious Man."

"Union" is also being produced by Scott Rudin, who previously helped bring Chabon's "Wonder Boys" to the screen and who is developing an adaptation of the author's "The Amazing Adventures of Kavalier & Clay," the trade paper said.