The company has collaborated with Pratchett's daughter Rhianna, who will work on the film's script of his father's young adult book, reported Entertainment Weekly.
"I've loved The Jim Henson Company's work all my life, so it's a great honour to team up with them and bring Wee Free Men to the big screen," Rhianna, also a prominent video game writer, said.
Jim Henson's son, Brian, will produce the film.