Watchmen star becomes Freddy Krueger
The Watchmen star will step into the shoes of Robert Englund, who played the scissor-handed serial killer in nine film incarnations as well as a short-lived TV spin-off.
Michael Bay's Platinum Dunes team will produce, with Wesley Strick (The Glass House) penning a screenplay to be directed by Samuel Bayer, who made his name mainly directing music videos.
The renaissance of the classic 1984 original comes soon after the re-launch of Friday the 13th another retro horror franchise by New Line.
Although the storyline has not been revealed, it will again focus on the creepy killer, who haunts the dreams of teens and kills them in their sleep.
Haley was nominated for a best supporting actor Oscar for his role in 2006 film Little Children, which starred Kate Winslet and Jennifer Connelly, both winners of an Academy Award.
The 47-year-old stars in the forthcoming Martin Scorsese film, Shutter Island, alongside Leonardo DiCaprio.