Global Creatures is developing the show and has tapped "Skyfall" and "Gladiator" writer John Logan to craft the book and Alex Timbers, who previously oversaw "Peter and the Starcatcher" to direct the play, reported Entertainment Weekly.
The film, which was nominated for eight Oscars, starred Ewan McGregor as a young poet, who falls in love with a courtesan, played by Nicole Kidman.
John Leguizamo and Jim Broadbent also featured in the semi-jukebox musical, which included renditions of songs by Elton John, Madonna, The Police and Queen, among others.
"I first encountered Alex Timbers through the remarkable and inventive production of Bloody Bloody Andrew Jackson and the brilliance of Here Lies Love. I immediately recognized the young director's creative spirit and felt we shared similar sensibilities and instincts," Luhrmann said in a statement.
"I'm tremendously happy to celebrate that Moulin Rouge! will be under his direction and that the book will be the creation of the gifted Tony Award-winning playwright John Logan whose writing I also admire deeply. It's immensely gratifying to know that a new wave of artists will be leading Moulin Rouge! into its rightful theatrical realm." he added.