'Straight Outta Compton' screenwriter Jonathan Herman will pen the reboot, which will see an immigrant rise from rags to riches in the gritty cirminal underworld of modern day LA, reports The Hollywood Reporter.
The last two versions of the film, from 1932 and the more famous 1983 version starring Al Pacino, were set in Chicago and Miami respectively.
The original 1932 piece charted the rise and fall of notorious gangster Al Capone during the prohibition era.
Pablo Larraín will direct the reboot, with Marc Shmuger, Scott Stuber and Dylan Clark producing.
Herman is also working on a re-imagined version of Alfred Hitchcock's classic 'The Birds' for Universal.