Dunst lost in France
The new film will see the "Spider-Man" actress take on the role of cake-touting French queen Marie Antoinette.
Coppola will not only direct the new project, but - as with smash hit "Lost in Translation" - will also pen the film.
"I've always loved the story of Marie Antoinette and the decadence of Versailles on the brink of revolution," Coppola said.
The film is set to begin shooting early next year, on location in France.
The film will examine the role the French queen played in the French Revolution. Jason Schwartzman will play Louis XVI, Antoinette's husband.
This will be Coppola's first film since "Lost in Translation", which won her the "best Original Screenplay" Oscar last year. She was also nominated for "Best Director" - the first woman to achieve this.
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