The drama, titled Ratched, has landed a two-season, 18-episode order at the streaming service following a bidding war between Netflix, Hulu and Apple, noted The Hollywood Reporter.
Ratched, which takes place in 1947, follows One Flew Over the Cuckoo's Nest villain Nurse Ratched and her journey into becoming a murderer, Deadline reported.
American Horror Story franchise star Sarah Paulson is set to star as the title character that was first portrayed by Louise Fletcher in the original 1975 Academy Award-winning film.
Murphy is working with Fox 21 Television Studios on the project and will direct the pilot with a script by newcomer Evan Romansky. Actor Michael Douglas who produced the original, is serving as an executive producer.
Production on Ratched is set to begin in the middle of 2018.