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.
Who Makes a Better Liz Taylor: Angelina Jolie or Catherine Zeta-Jones?
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."
"We go way back," Zeta-Jones has said. "My mother took me to the stage door before a matinee. I brought her daffodils -- the Welsh national flower. She was wearing big black sunglasses and I asked her to take them off -- I wanted to see those famous eyes and she replied, 'Oh, it's too early for that, honey!'"
Catherine Zeta-Jones More Like Liz Taylor?
While Jolie might exude more of the sultry sexuality that Taylor had in her heyday, Zeta-Jones' figure more closely matches Taylor's -- that is, until recently. Known for her curves when she burst on the scene in "Zorro," Zeta-Jones has appeared bonier lately. On the other hand, Hollywood gossip has had Jolie looking dangerously thin at times.
Like Taylor, Zeta-Jones is a member of Hollywood royalty -- albeit through marriage to husband Michael Douglas. Both also share British roots. Taylor was born in England and spent her early childhood there. Zeta-Jones is Welsh.
Zeta-Jones also seems to shares more of Taylor's extravagant tastes. Zeta-Jones once quipped, "A million pounds is not a lot of money for us." Like Taylor, who has collected the finest gems, Zeta-Jones has said she collects houses the way others collect art.
"Jones is more similar to Taylor in that sophisticated, classic way," Drew said.
In the end, Drew declared Zeta-Jones the winner. "Angelina looks too much like Angelina. It would be hard for her to become a character like that. She would have to gain weight," Drew said.
"Catherine would be more likely, in terms of being able to portray another character and not herself," he said. "She also looks more like her. She's more Liz Taylor-esque."