The original Toni Erdmann, written and directed by Maren Ade, was first released in Europe in 2016, and only saw a UK release in February. It starred Peter Simonischek as a fake teeth wearing prankster father, and Sandra Hüller as his highly strung daughter who finds herself on the receiving end of her father's practical jokes.
The film has received universal critical acclaim and swept the board at the European Film Awards back in December.
Adam McKay (The Big Short) will be shepherding the project as producer, with longtime partner Will Ferrell (Anchorman: The Legend Of Ron Burgundy), and Wiig also producing. Original director Maren Ade will executive produce, but there is no word on who will helm the remake.
According to Variety, an English remake had been floated since May last year, but Nicholson was such a fan of the original film himself that he approached Paramount Pictures CEO Brad Grey, and the wheels quickly started to set in motion.