The star's sister, Tina, and mother, Patricia Glassop, have signed a deal to allow their 2000 book Just A Man: The Real Michael Hutchence to be turned into a film called Two Worlds Colliding, in reference to Inxs track Never Tear Us Apart.
The movie will be made by writer/producer Robert Galinsky, who hopes to begin the casting process early next year (13) ahead of a start date in late 2013.
He already has a number of actors in mind for the lead role of Hutchence, including Spartacus: Blood and Sand star Jai Courtney and Animal Kingdom co-stars Sullivan Stapleton and James Frecheville.
Galinsky tells Australia's Encore magazine, "I chased the idea 12 years ago but there was so much litigation and family issues, it looked too harsh. But recently I was made aware of Trevor Ray Field - who was good friends of Tina Hutchence - and he brought me the book. Over the course of the last month we negotiated the rights with Tina, and we hit the mark.
"I like music biopics to be about the person, not just sex, drugs and rock 'n' roll. It's going to be a heartfelt, interesting project about a complex life, like Ray or Walk the Line."
Richard Lowenstein, who directed Hutchence in 1986 Australian film Dogs in Space as well as Inxs' videos for Need You Tonight and Never Tear Us Apart, is also rumoured to be working on a similar biopic called Michael, but Galinsky insists it won't affect his film.
He adds, "I'm aware of Richard's project - there are a few around. This will be from the source material with a family perspective however. Richard is a good director, but I think this will appeal to a mainstream audience. As long as they are strategically placed there is room (for both)."
The news comes exactly 15 years after Hutchence was found dead in a Sydney hotel room on 22 November 1997.