Variety.com said Randy Skinner is attached to direct and choreograph the Richard Rodgers and Lorenz Hart show, which has a new book by Joe DiPietro.
O'Donnell has previously appeared on Broadway in "Fiddler on the Roof," "Seussical" and "Grease."
She took part in private readings of "Babes" last month, along with "Young Frankenstein" star Shuler Hensley,
Variety.com said, adding no time line has been set for the show's possible opening.
The revival would be the musical's first production on Broadway since its 1937 debut.
Notable deaths of 2014 [PHOTOS]