Sofia Coppola, director of films like Somewhere, The Bling Ring, and Lost in Translation, is in negotiations to direct a live-action version of The Little Mermaid. Deadline reports that the movie will be produced by Universal Pictures and Working Title partners Tim Bevan and Eric Fellner, and that they're looking to move quickly on the project.
Also, the fact that Universal Pictures and Working Title are involved means that this isn't a Disney movie, but an adaptation of the original (and much darker) Hans Christian Anderson-penned fairy tale.
Really, though, Disney would never let Sofia Coppola direct one of their movies. What kid do you know with the patience to sit through Beauty and the Beast, but with the tone of Somewhere?