The news has been confirmed by variety.com with sources.
David Fincher and Robert Towne, the film's writer, are attached to pen the script. It will reportedly focus on the exploits of a young Jake "J.J." Gittes during his early days as a private investigator.
Netflix declined to comment.
The film was released in 1974 and starred Jack Nicholson and Faye Dunaway.
Nicholson played Gittes, who is originally hired to expose an adulterer but becomes embroiled in a much larger plot. Roman Polanski directed with Robert Evans producing.
The film became a box office and critical hit upon its release, racking up eleven Academy Award nominations. Towne ultimately took home the film's lone Oscar for best original screenplay.
A sequel titled "The Two Jakes" was released in 1990 with Nicholson and Towne returning.
In addition to his Oscar win for "Chinatown", Towne was nominated for his work on the screenplays for the films "The Last Detail" - another Nicholson starring vehicle - as well as "Shampoo" and "Greystoke: The Legend of Tarzan, Lord of the Apes". His other credited works include "The Firm" and "Mission: Impossible".
Fincher previously worked with Netflix during his time on the critically-acclaimed drama "House of Cards", on which he served as executive producer in addition to directing the first two episodes.
He is best known for his film work, having directed films such as "Seven", "Gone Girl", "The Curious Case of Benjamin Button", and "The Social Network".
( With inputs from IANS )