The production will start in January and the 10-episodes series will be premiered on FX next year, said The Hollywood Reporter.
Hawley will be the show-runner with executive producers including Joel and Ethan Coen, Warren Littlefield and John Cameron.
Dunst, 32 will star as Peggy Blomquist, a beautician with big-city dreams who wants to make her own identity and how she struggles with societal expectations.
Plemons, 26, will play Ed, Peggy's husband, and a butcher's assistant who is eager to support his wife.
Plemons is known for his role in TV series 'Friday Night Lights' and 'Breaking Bad'.
Additional castings will be announced soon. 'Fargo' is produced by MGM Television and FX Productions.