The film star, who has previously directed movies including Second World War art heist caper Monuments Men, will bring journalist Nick Davies' book Hack Attack to the big screen, with shooting scheduled to begin next year.
The 53-year-old, who is the son of journalist Nick Cloo-ney and is engaged to Lon-don-based lawyer Amal Alamuddin, said he was delighted to be involved in the film which will focus on the scandal that engulfed Rupert Murdoch's news empire.
"This has all the elements - lying, corruption, blackmail - at the highest levels of government by the biggest newspaper in London," he said in a statement.
"And the fact that it's true is the best part. Nick is a brave and stubborn reporter and we consider it an honour to put his book to film."
Mr Davies' book was the product of six years of investigation.
Former No 10 spin doctor Andy Coulson was convicted for his part in the plot in June after a lengthy trial at the Old Bailey. His co-defendants Rebekah Brooks and managing editor Stuart Kuttner denied any wrongdoing and were cleared of all charges.
Hacking victims included the family of murdered schoolgirl Milly Dowler, sports stars, celebrities and the Royal Family.
Clooney, who earned a best director Oscar nomination in 2006 for Good Night, and Good Luck, will also produce the movie.