Crawford and Davis' rift began on the set of the 1962 movie Whatever Happened to Baby Jane? and developed into a lifelong rivalry. The series will examine the feud over the course of an eight-episode season slated to debut in 2017.
The Feud pilot is based on the script Best Actress by Jaffe Cohen and Michael Zam. Alfred Molina will co-star as Baby Jane director Robert Aldrich, with Stanley Tucci as Jack Warner, Judy Davis as Hedda Hopper and Dominic Burgess as Victor Buono.
"So excited to work with so much talent," Sarandon tweeted Thursday. She and Lange will also co-produce, with Murphy as executive producer and director on several episodes.
"Ryan keeps reinventing TV," FX Networks CEO John Landgraf said of the Glee and American Horror Story creator.
"With Jessica and Susan headlining, it's already to be sure to be flawlessly acted, wildly entertaining and fiercely provocative," Fox Television CEOs Dana Walden and Gary Newman added. "It's a fantastic project which only Ryan Murphy could deliver."
Lange collaborated with Murphy on the first four seasons of American Horror Story, which will return for a sixth season in the fall. Feud follows the success of American Crime Story: The People vs. O.J. Simpson, which Murphy executive produced.