He will star in the project, translated as Stalin's Sofa, which will be directed by actress Fanny Ardant, said The Hollywood Reporter.
The film is based on French author Jean-Daniel Baltassat's 2013 novel.
Depardieu was presented with a Russian passport by Vladimir Putin in 2013 after moving to avoid higher taxes in his native France.
Mr Depardieu's move to Russia came after he criticised French President Francois Hollande's plans to raise taxes to 75% for those earning more than 1m euros (Â£817,400).
The actor accused the government of punishing "success, creation and talent".
In 2011, he played the lead role in the film Rasputin, a Franco-Russian production about the life of eccentric monk.
He also recently announced a movie about WW2 French fighter aces who flew alongside Red Air Force pilots over the Eastern Front.
Josef Stalin, the supreme ruler of the Soviet Union for more than 25 years, helped the allies defeat Nazism.
But his regime of terror caused the death and suffering of tens of millions.
The new movie, to be produced by French/Portuguese company Leopardo Filmes, is to be set in the 1950s Soviet Union and will centre on a young artist commissioned to create Stalin's monument.

Cardiff were 2-0 ahead with five minutes left before the Clarets clawed their way back to 2-2, leaving the Bluebirds 10th in the Championship.
With only five goals in eight games - all from set-pieces - Slade recognises his team must improve in attack.
"I thought we were a threat in open play. We've just got to be more ruthless in the box," he said.
"I thought we were creating chances, even in the second half I think [Joe] Mason went through once or twice. On another day, we'd probably finish those.
"We've got to be scoring more goals when we get those opportunities in open play.
"It is really really hard to take. We were the better side for long periods and the better side didn't win."
Second-half substitute Mason was the last Cardiff player to score in open play, tapping in for the opening goal when Slade's side drew 1-1 at Brighton on 3 October.
It was from the reliable source of set-pieces that Cardiff built their 2-0 lead against Burnley, Aron Gunnarsson nodding in from Joe Ralls' free-kick and Peter Whittingham's corner finding the head of Sean Morrison.
Seemingly coasting at 2-0 up with only five minutes left, Cardiff capitulated as Burnley fought back with a close-range strike from Rouwen Hennings and an own goal by Matt Connolly.
It was Connolly's injury-time aberration which most dismayed Slade, as the former Queens Park Rangers centre-back dragged Michael Keane's header over his own line.
"The second goal was just bizarre. It was going a mile wide but then it came off Matthew and rolled right into the net," said Slade.
"It was a crazy equaliser. You could see how much it hurt the players who had worked so hard to get the better of a very good team.
"That goal is the difference of being between sixth and tenth and it's pretty hard to take."
French actor Gerard Depardieu is to play Russian dictator Josef Stalin in a new film, according to reports.
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Manager Russell Slade says Cardiff must be more ruthless after they threw away a two-goal lead to draw with Burnley.