That's right according to reports from A Socialite's Life:
Meanwhile Audrey Tautou scores the role of a lifetime. Ms. Tautou will have the honor of portraying fashion vixen Coco Chanel. The film will be centered around Coco's childhood and rise into the world of couture. The biopic isn't due to start filming until 2008, but another picture is already underway. Danielle Thompson has begun the first stages of her Chanel biopic.
I for one, think this is pretty exciting. I can't wait until we get to at least see some screen shots. I bet the costuming will be amazing