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The Jerusalem-born actress will begin filming the movie in Israel in the coming months.
Natalie Portman is set to star in and direct a movie adaptation of Amos Oz's novel "A Tale of Love and Darkness."
She also wrote the screenplay.
Portman was reportedly interested in directing the Israeli author's novel for several years. She initially wanted to make the film in Hebrew but it is still unclear what language will be chosen. It will be her directorial debut.
Oz asked to have final approval before production of the film begins.
The Jerusalem Film and Television Fund announced the new film and said it would be providing about $500,000 in financing for the Israeli-American co-production.
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The movie will follow Oz's autobiography, which takes place in Jerusalem in the 1940s. It focuses on his mother's mental illness and his father's inability to help her.
Oz's life takes place amidst the various events that shook the region during that turbulent period.