BBC Scotland and Slate North are working to turn the Scots author's novel into a two part drama that will be shown on BBC Scotland and BBC Two.
The novel, which was published in 2012, is set in the fictional Aberdeenshire village of Stonemouth and focuses on Stewart Gilmour, who has returned for his best friend's funeral.
It is the first work of Banks' to be adapted since his death from cancer in 2013, aged 59.
Christopher Aird, BBC Scotland's head of drama and executive producer on Stonemouth said: "Iain Banks was such a prolific and important writer, I am thrilled BBC Scotland Drama and Slate North are bringing Stonemouth to the screen. We have some very exciting ideas for the adaptation and I am sure we will be able to attract some of the very best Scottish acting talent to the drama."
The dramatisation will be written by David Kane and directed by Charles Martin. Filming at locations around Scotland is due to begin in October 2014.
Andrea Calderwood, from Slate North, added: "Having worked with Iain on the much-loved BBC Scotland adaptation of The Crow Road, I felt that, in Stonemouth, Iain had created a similarly engaging world. We had been very much looking forward to collaborating again on this one, and working with David Kane. David has really captured the unique spirit of Iain's writing in his adaptation, and with his and Charles Martin's award-winning talent, I'm sure Iain would have enjoyed seeing the great characters and story of Stonemouth brought to the screen."