The Italian film, called "L'uomo Che Disegno Dio" -- or “The Man Who Drew God" -- will be directed by Franco Nero. It will shoot in Italy and also star Nero's wife, Vanessa Redgrave, sources said.
"I'm very happy Kevin agreed to participate in my film," Nero told ABC News. "I consider him a great actor and I can't wait to start the movie."
Spacey is not commenting on the role.
The two-time Oscar-winning actor faced multiple accusations and lawsuits over alleged sexual misconduct in recent years.
Spacey parted ways with Netflix's "House of Cards" in late 2017 after at least 20 young men reported alleged sexual misconduct by Spacey at the London theater, the Old Vic, between 1995 and 2013. Investigators have not said whether they will bring criminal charges against Spacey in connection with those accusations, according to The Associated Press.
In 2018, Spacey was charged with indecent assault stemming from an alleged incident with a teenager on Nantucket Island, Massachusetts, during the summer of 2016. He pleaded not guilty, but that charge was later dropped, and the alleged victim in that case also withdrew a civil lawsuit against the actor.
The Los Angeles District Attorney's Office declined to file charges against Spacey in two separate sexual assault allegations, after the statute of limitations had run out in one case and the second alleged victim, a massage therapist, died. A lawsuit against Spacey involving the massage therapist was also dismissed.
An anonymous man filed a lawsuit against Spacey in New York last year, alleging the actor sexually abused him in the 1980s when he was 14. Earlier this month, a judge ruled the man can't proceed anonymously in court, the AP reported.
Spacey last appeared on the big screen in "Billionaire Boys Club" in 2018. The film reportedly took in a record-low gross of $618 from 11 theaters in several states during its opening weekend.
He has kept a somewhat low profile, beyond tweeting out Christmas Eve video messages for the past three years. In 2019, he appeared in character from "House of Cards" while suggesting that fans should "kill people with kindness." Last year, he told people suffering that "you are not alone."