The show has been a huge success since it debuted on Broadway in 2005 and in London's West End in 2008.
The Official London Theatre Web site said Favreau's movie version is expected to hit theaters next year, however, no casting has been announced yet.
The musical features numerous hits by the 1960s New Jersey vocal group Frankie Valli and the Four Seasons, including "Sherry," "Walk like a Man," "Big Girls Don't Cry," "Oh What a Night!" and "Beggin'."
Favreau is a native New Yorker best known for directing "Swingers," "Elf" and "Iron Man."