The actress is in negotiations to portray lead Elena McMahon, a journalist who finds herself in the dangerous world of arms dealing, Entertainment Weekly reported.
Cassian Elwes, who worked with Rees on Mudbound, is producing the project with a script by Marco Villalobos, Variety reported. Mudbound has earned four Academy Award nominations including one for Rees for Best Adapted Screenplay.
The Last Thing He Wanted is in pre-production with no set release date.
Hathaway was last seen in Colossal and will star opposite Sandra Bullock, Rihanna, Cate Blanchett, Mindy Kaling, Sarah Paulson and Helena Bonham-Carter in Oceans 8, due in theaters on June 8. She is also set to star in a live-action Barbie film set for release on May 8, 2020.