The film is based on the Michael Lewis's bestseller "The Big Short: Inside the Doomsday Machine," a non-fiction piece that chronicles the events leading up to subprime mortgage crisis-and the investors who got rich during the boom.
The book made it to No. 1 on The New York Times bestseller list.
Citing unnamed sources, Variety said Pitt will co-produce the film through Plan B Entertainment. Adam McKay is expected to write the screenplay and direct the film, the report said.
Lewis also wrote the books "Moneyball," "Liar's Poker" and "Flash Boys: A Wall Street Revolt."
Paramount Pictures declined to comment on the report.
Click here to read the full report form Variety.