Disney chief creative officer John Lasseter made the announcement at the studio's D23 Expo, reported Variety.
To be directed by "Tangled" helmer Nathan Greno, the project will be produced by Dorothy McKim.
"We hope this will be the definitive version of 'Jack and the Beanstalk'... With comedy and deep emotion," Greno said.
"Frozen" songwriters Robert Lopez and Kristen Anderson-Lopez will create the music for the film.
According to the director, the story is set in Spain during the Age of Exploration. It follows Jack as he discovers a world of giants hidden within clouds.
"Gigantic" will hit theatres in 2018.