According to Variety, Rob Minkoff ("The Lion King") will direct the film, but that's much less important that the report that Yuen Woo-Ping ("The Matrix," "Fearless," "Kill Bill," etc.) will choreograph the action sequences.
The trade paper says that production will begin in April with an estimated $70 million budget.
The Li and Chan collaboration had long been rumored. Based on a script by John Fusco, the film will apparently be based on the legend of the monkey king and his quest for immortality. Li would play said monkey king, as well as a silent monk. Chan would play another monk, T'sa-Ho.
Li was most recently seen in "Fearless," which he called his last martial arts film. Fortunately, the monkey king project would just be an adventure film with martial arts.
Chan is currently shooting the long-demanded "Rush Hour 3."