A sequel to the 1996 basketball film Space Jam is in the works starring NBA player LeBron James.

The Cleveland Cavaliers star is reportedly set to take on the rumoured sequel to the original film starring Michael Jordan and a host of Looney Tunes characters, including Bugs Bunny.

James' company, SpringHill Entertainment, signed a deal with Warner Bros in July according to the Hollywood Reporter.

The basketball star recently proved he can act in Amy Schumer's comedy Trainwreck.

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Now the director behind four films in the Fast & Furious franchise, and Star Trek Beyond, Justin Lin, is working on a script for Space Jam 2 alongside Andrew Dodge and Alfredo Botello.

It's understood Lin is also keen to direct the highly-anticipated film.

The original film made $US230.4 million ($A300.45 million) worldwide, according to the Hollywood Reporter.

- news.com.au