The film is a big screen adaptation of Ubisoft Motion Pictures' own hit game, said The Hollywood Reporter.
Gyllenhaal, 35, is producing the project with Ubisoft's Gerard Guillemot.
The plot is set in dystopian New York City after a smallpox pandemic. In the third-person shooter game, the player is an agent of the Strategic Homeland Division, aka The Division, and is searching for the origins of the outbreak.
Ubisoft developed and published the game with Red Storm Entertainment also involved. Microsoft Windows, PlayStation 4 and Xbox One were the platforms.
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