"Annie" -- a vehicle for Smith's daughter, Willow -- will be developed by Sony and produced by Jay-Z and Overbrook Entertainment, of which Smith is a partner with his wife, actress Jada Pinkett Smith, the Los Angeles Times reported Wednesday.
Smith and Jay-Z recently teamed up for the Broadway production of the musical "Fela!," the story of Nigerian musician and composer Fela Anikulapo Kuti.
"Annie" was adapted for the movie screen in 1982 by director John Huston and starred Albert Finney, Carol Burnett, Ann Reinking and Aileen Quinn as orphan Annie. A television version aired on ABC in 1999.
Jay-Z, real name Shawn Carter, signed Willow Smith to his music label, the Times said. He included the "Annie" song "It's the Hard Knock Life" in his hit single "Hard Knock Life (Ghetto Anthem)."