According to "Entertainment Tonight," both Jolie, 35, and Zeta-Jones, 40, have expressed an interest in playing the dark-haired, violet-eyed screen legend. The film would tell of Taylor's storied romance with actor Richard Burton, based on Sam Kashner and Nancy Schoenberger's book "Furious Love: Elizabeth Taylor, Richard Burton, and the Marriage of the Century." Mike Nichols would reportedly direct.
Hollywood sources have also floated Russell Crowe, Clive Owen and Colin Farrell as possible Burtons.
Jolie cast doubt on rumors of her involvement when US Weekly caught up with her on the red carpet last week. "She had never heard that she was slated to play her," senior editor Ian Drew told ABCNews.com. "She said no one could play Liz Taylor but herself."
"Hold your horses world. I've been hearing all kinds of rumours about someone being cast to play me in a film about Richard and myself," she Tweeted. "No one is going to play Elizabeth Taylor, but Elizabeth Taylor herself."
"Not at least until I'm dead, and at the moment I'm having too much fun being alive...and I plan on staying that way. Happiness to all," she wrote.
Even so, ABCNews.com couldn't help but wonder who would make a better Taylor: Jolie or Zeta-Jones. Both are Oscar-winning actresses, divas in their own right and tabloid favorites. Here, we size them up for you:
It would seem Jolie has the edge: She's been called the Elizabeth Taylor of her generation and her personal and professional life rivals Taylor's. Much as Taylor was in her day, Jolie is probably the biggest star of her generation, known around the world as much for her romances as her film roles.
"In terms of being a sensation -- a movie star, Angelina is more comparable," Drew from US Weekly said.
Moreover, Jolie is slated to star in a "Cleopatra" remake. It was while playing Cleopatra, Taylor's most famous role, that she met and fell in love with Burton. Taylor and Burton were both married when they began their notorious affair, which was condemned by the Vatican. They divorced their spouses and married each other, breaking up after 10 years. They married a second time but only stayed together another 10 months.
Like Taylor, Jolie met her soulmate, Brad Pitt, on the set of a movie, "Mr. and Mrs. Smith," while he was married to Jennifer Aniston. Before that, she enticed Billy Bob Thornton away from then-fiancee Laura Dern.
Both Jolie and Zeta-Jones are regulars in the tabloids, but like Taylor, Jolie knows how to manipulate the press, staging an appearance with her partner Pitt or her six children when rumors abound that there are problems at home.
Then again, Zeta-Jones may have destiny on her side. She met Taylor when she was 12 and the elder diva was starring in London's West End production of "Little Foxes."