Efron, 26, is set to play a young man who is tricked by his grandpa - a perverted former army general played by De Niro - to travel to Florida for spring break, according to Variety.
The film would mark the second time that the pair have collaborated on a movie, following the 2011 ensemble flick 'New Year's Eve'.
What's more, it would be the second comedy film that Efron has starred in for Universal, after appearing alongside Seth Rogen in 'Bad Neighbours' earlier this year.
'Dirty Grandpa' is to be written and directed by Dan Mazer, who is perhaps most famous for his collaborations with 'Borat' creator Sacha Baron Cohen.
The studio is still confirm a release date for the eagerly-awaited project.
Efron, meanwhile, has got his movie career back on track after recently admitting that he sought treatment for an alleged cocaine addiction twice last year.
Reflecting on his personal problems, he explained: ''It was getting to the point where I was caring less about the work and waiting more for the weekend, where I couldn't wait to go out and sort of let loose and have fun.
''But then when Monday and Tuesday were too difficult to get through, then I was like, 'Oh, this is bad.'''
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