The British actor - famed for his parody movies based on outrageous characters, including Kazakhstani reporter Borat and Austrian fashionista Bruno - will play the lead role in `The Dictator`, based on the book `Zabibah and The King` by former Iraqi dictator SaddamHussein.
According to an official release, the film "tells the heroic story of a dictator who risked his life to ensure that democracy would never come to the country he so lovingly oppressed".
Larry Charles, who worked with Sacha on `Borat` and `Bruno`, will direct the project, while Scott Rudin is set to produce.
Sacha - who is currently filming the role of the station inspector in `Hugo Cabret` - will also be involved in production on the Paramount Pictures movie.
It is the second film to be attached to Sacha recently, following news he would be playing Freddie Mercury in a biopic about the late Queen singer.
`The Dictator` is set for release on May 11, 2012.