Co-written by Luhrmann, "Strictly Ballroom" started as a stage play in 1984 before going on to become one of the most successful Australian films of all time.
"I have often marveled at how this story, born so long ago, has been in my life for so many years and has managed to touch, move, entertain and uplift so many different people from so many different backgrounds," Luhrmann said at a Sydney press conference this week.
"I think the simple truth is that, despite all the sequins, outrageous hairdos and classic Hollywood musical plotting, the simple message that there isn't only one way to cha cha cha, and that within us all we have the true potential to dance our steps is something that appeals to all of us."
"Strictly Ballroom the Musical" will feature the original creative team behind the 1992 film -- director and co-writer Luhrmann, set and costume designer Catherine Martin, choreographer John O'Connell, and co-writer Craig Pearce.
Luhrmann's other films include "The Great Gatsby," "Australia" and "William Shakespeare's Romeo & Juliet."