According to Deadline, the film will explore the unlikely friendship between struggling journalist, Danny Tate (Dornan), and Villechaize (Dinklage).
The film is being written and directed by Sacha Gervasi from a story by him and Sean Macaulay. Dinklage is serving as an executive producer alongside Gervasi, Steven Zaillian, Richard Middleton, Ross Katz and Jessica de Rothschild with Garrett Basch and David Ginsberg co-executive producing.
No premiere date has been set.
Villechaize is best known for starring as Nick Nack in 1974 James Bond film The Man with the Golden Gun and for appearing as Mr. Roarke's assistant, Tattoo, in television series Fantasy Island. He committed suicide at the age of 50 in 1993.
"Herve wasn't just a pop culture icon; he was one of the most charming, cultured and dangerous people I've ever met," Gervasi said previously of the actor. "His is the story of a unique misfit trying to find his place in the world.