Emma Thompson is set to write and direct the new 'Nanny McPhee' musical.

The 58-year-old actress - who played the frighteningly hideous nanny in the 2005 movie - has adapted the 'Nurse Matilda' books, written by Christianna Brand, for the stage production of the hit fantasy and teamed up with singer/songwriter Gary Clark to provide the lyrics, according the Daily Mail newspaper's Baz Bamigboye column.

Thompson has admitted she's ''excited and naturally nervous'' about directing the musical but things are progressing at a good rate as they've just had a workshop for the first act and are hoping to kick start the second act towards the end of the year.

She said: ''We've just held a workshop of the first act and we'll do the second act in October.''

Film producers Eric Fellner and Tim Bevan, who run top British studio Working Title, are producing - just like they did with 'Billy Elliot' but it's unlikely the musical will be ready to hit a London stage until 2020 as they've still got to cast and go into rehearsal.

Thompson remained tight lipped on which actress she was eyeing up to play the nanny - who turns up at Cedric Brown's house to discipline his wild children - but the newspaper has suggested that Imelda Staunton, 62, could be in the running.