The Netflix movie will be shot in Colorado -- where its namesake novel by Kent Haruf was set.
The film's stellar cast includes Fonda as Addie Moore, Redford as Louis Waters, Bruce Dern as Dorlan, Judy Greer as Holly, Matthias Schoenaerts as Gene, and Iain Armitage as Jamie, Addie's grandson.
The film will be produced by Finola Dwyer. Ben Ormand serves as Executive Producer, according to a release from Netflix.
Adapted for the screen by Scott Neustadter and Michael H Weber of "The Fault in Our Stars" fame, the movie begins when Addie Moore pays an unexpected visit to a neighbor, Louis Waters.
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"I'm looking forward to teaming up with Jane and working with the talented Ritesh Batra. Our Souls at Night is an endearing story and I'm happy we get to share it with a broader audience," said Redford.
The film reunites Fonda and Redford as an onscreen couple, famously captured in films like "The Chase" and "Barefoot in the Park". The pair last worked together in 1979 on "The Electric Horseman".
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