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.