The project is set up at Warner Bros-based Legendary Pictures, the company that helped produce blockbusters such as Inception and The Dark Knight.
Legendary picked up the rights to the giant lizard from Japan's Toho Co last March.
Gareth's MONSTERS, released late last year, took a different tack in its handling of the alien invasion genre and if you have not seen it... shame on you, and go get the DVD!
MONSTERS centered on two characters traveling through Mexico that had become a quarantine zone due to an alien monster infestation.
The film slyly showed only parts of the aliens, with tentacles attacking cars and people during the night, for example. But the film's climax featured two giants slithering around an abandoned petrol station.
According to Reuters "The movie got Hollywood gaga over Edwards and Legendary executives figured he could be the right man to take their monster into the 21st century."
He will now work with a new yet-to-be-hired writer on the script.
The 1998 Godzilla, starring Matthew Broderick, saw the big lizard rampage through New York City.
The Sony release grossed about $US380 million globally, having cost about $US130 million to make.
And don't forget to start planning your team for the next 48hr film challenge April 2011. Gareth is one of the jury along with another British director, Edgar Wright!