Patricia Clarkson is in negotiations to co-star with Dennis Iliadis on board to direct. Adam Alleca is penning the script.
Story follows a man who suspects the mansion he inherited from his parents is haunted.
Blum will produce through his Blumhouse Pictures banner, King will produce through his GK Films shingle and DiCaprio will produce along with Jennifer Davisson Killoran through their Appian Way production company.
Universal will distribute as part of its first look deal with Blumhouse.
Grace is repped by ICM Partners and Brillstein Entertainment and Clarkson is repped by CAA and Anonymous Content.