UPDATE, 3:15 PM: FilmDistrict has confirmed its deal. The release is below the original exclusive post.

EXCLUSIVE: After starting the day by acquiring the Gerard Butler soccer comedy Playing the Field, FilmDistrict’s Peter Schlessel and Bob Berney are near a deal to acquire domestic rights to Arabian Nights, the Inferno Entertainment project that has Chuck Russell directing The Hunger Games’ star Liam Hemsworth. The film is in its formative stages, with Russell and Barry Ambrose co-writing the script. It’s an ambitious $60 million action film that Inferno is creating action on in the Cannes Festival market. (Inferno also is in pre-production on director Andrew Niccol’s The Host with Saoirse Ronan and in post on the Brad Pitt starrer Cogan’s Trade, Joe Carnahan’s The Grey and Killer Elite.) Meanwhile, FilmDistrict is being aggressive; its first two releases, Insidious and Soul Surfer, both scored at the box office.

Cannes, FRANCE (May 12, 2011) – FilmDistrict announced today the company has acquired all U.S. rights from Inferno Entertainment to ARABIAN NIGHTS, with Chuck Russell (The Mask, Scorpion King) set to direct and Liam Hemsworth (The Hunger Games) set to star. Russell also co-wrote the screenplay with Barry Ambrose. Inferno’s Bill Johnson is producing the film with ROAR’s Will Ward and Jay Froberg, and Mayhem Pictures’ Mark Ciardi. Inferno’s Jim Seibel is executive producing. Inferno is handling worldwide sales of the film.

ARABIAN NIGHTS is a visually stunning 3-D retelling of the classic adventure tale about a bold, young commander (Hemsworth) who joins forces with Sinbad, Aladdin and his Genie to rescue Scheherazade and save her Kingdom from the dark powers of an immortal Sorcerer. The film weaves together weaves together several beloved tales and characters into a wild magic carpet ride for all ages.

“Chuck Russell’s film is entertainment on a grand scale,” says Peter Schlessel, CEO of FilmDistrict. “With its enchanting story and astonishing visuals, ARABIAN NIGHTS truly creates cinematic magic.”

“ARABIAN NIGHTS is a fun family adventure in the tradition of the classic Ray Harryhausen movies,” says Bob Berney, President, Theatrical Distribution, FilmDistrict. “His mash-up of characters and legends into one story is a very cool concept.”

In addition to this film, Inferno is currently in pre-production on THE HOST (based on the best-selling book by Stephenie Meyer) starring Saoirse Ronan; and in post-production on Andrew Dominik’s COGANS TRADE starring Brad Pitt; Joe Carnahan’s THE GREY starring Liam Neeson; and Gary McKendry’s KILLER ELITE starring Jason Statham, Clive Owen, and Robert DeNiro.