According to Britain's Daily Mail newspaper, the actor, who notably played Harry Potter villain Lord Voldemort in the hit movies, is being tapped to play a gender-bending version of the character, in the movie helmed by Matthew Warchus, reports aceshowbiz.com.
While Fiennes has yet to star in a musical he showcased his vocal abilities in the film "Bernard and Doris", in which he sang a duet with Susan Sarandon of Peggy Lee's "I Love the Way You're Breaking My Heart".
Meanwhile, Warchus and his collaborators are rumoured to be seeking "La La Land"'s Oscar-winning actress Emma Stone to play Miss Honey, the kind-hearted teacher who becomes Matilda's mentor.
"Matilda the Musical" debuted in 2010 before hitting London's West End the following year. It transferred to Broadway in 2013 and ran for four years, before closing in 2017.
The movie, which follows the story of a young bookworm prodigy mistreated by her ignorant parents and abusive school headmistress, will be a collaboration between Sony Pictures and Netflix, and will receive a limited theatre release in Britain before hitting the streaming service worldwide.
The novel was previously made into a film in 1996, starring Mara Wilson as the title character, with appearances from Danny DeVito, Rhea Perlman, Embeth Davidtz and Pam Ferris.
( With inputs from IANS )