Deadline reported Thursday that Jovovich, 45, and Bautista, 52, have joined the new film.
The Hollywood Reporter confirmed the news.
In the Lost Lands is based on the short story by Game of Thrones author George R.R. Martin. Paul W.S. Anderson will direct the film.
Jovovich and Anderson, who married in August 2009, previously collaborated on the Resident Evil movies.
In the Lost Lands follows a queen who hires a sorceress, Gray Alys (Jovovich), in the hopes of obtaining the gift of shape shifting. Alys and her guide, the drifter Boyce (Bautista), are sent to the Lost Lands, where they must outwit and outfight man and demon.
In addition to directing, Anderson wrote the script and will produce the film with Jovovich, Bautista, Jeremy Bolt and Jonathan Meisner.
FilmNation will present the project at the virtual European Film Market next week. CAA will finance the film and rep domestic rights.
Jovovich and Anderson most recently collaborated on the film Monster Hunter, based on the Capcom video game series. Bautista plays Drax the Destroyer in Guardians of the Galaxy and other films in the Marvel Cinematic Universe.