The "Fast Five" filmmaker will co-write the script with Andrew Dodge and Alfredo Botello, while Lin is also in talks to direct and produce the project via his Perfect Storm Entertainment company, according to The Hollywood Reporter.
The news emerges months after rumours of a "Space Jam" sequel first picked up pace, after studio bosses at Warner Bros filed new trademarks for the franchise in June, 2015.
Reports of a follow-up to the 1996 film were further fuelled when LeBron and his production partners at SpringHill Entertainment inked a new business deal with executives at Warner Bros Entertainment, encompassing projects in TV and film.
The live-action/animated film also featured other basketball greats, such as Larry Bird and Charles Barkley, and actors Danny DeVito and Bill Murray.