Andrew Tennenbaum will produce the remake of the 2004 original, according to a statement from L.A.-based Flashpoint.
"This is my first Asian film remake and I couldn't be more excited," Tennenbaum said.
Last year, The Departed, a remake of Hong Kong boxoffice winner Infernal Affairs, won four Oscars, including best picture and best director for helmer Martin Scorsese.
Financial details of the Phoenix deal, brokered with help from the Shanghai office of the William Morris Agency, were not disclosed.
The original Phoenix, produced by Chan, Albert Yeung and Willie Chan and sold internationally by Emperor Motion Pictures (Chan's joint venture partner in JCE), was directed and co-written by its star, Stephen Fung.
"Stephen tells a great story and has a terrific sense of humor," Tennenbaum said. "This movie should be remade for a bigger, broader audience."
The Cantonese-language original was Fung's directorial debut.