Rupert Sanders will direct the DreamWorks production, which is based on the famous Japanese manga series written and illustrated by Masamune Shirow, according to The Hollywood Reporter.
"Ghost in the Shell" follows the story of a female special-ops cyborg who leads a task force called Special 9 in order to stop dangerous extremists bent on the destruction of the advancement of cyber technology.
Kitano will play the chief of public security Section 9, Daisuke Aramaki.
Kitano is one of Japan's top film talents, having worked both in front of and behind the camera.
Paramount Pictures will release "Ghost in the Shell" on March 31, 2017.