Reese Witherspoon has reportedly signed up to star in 'Downsizing'.

The Oscar-winning actress is to reunite with 'Election' director Alexander Payne for his next project, which he has described as a ''sci-fi social satire''.

Payne started work on the project during his seven-year hiatus between 'Sideways' and making 'The Descendants' and the plot focuses on a man with money troubles who decides the answer to his problems is to shrink himself down to a tiny size.

Matt Damon is in line to play the miniature lead opposite Reese and

Sacha Baron Cohen was at one point in line to portray his Spanish business partner.

Shooting on the movie was due to start years ago but was delayed by Payne's work on 'Nebraska'. There is currently no date set for production to start on 'Downsizing'.

Reese is currently being tipped for another Academy Award win for her performance in drama 'Wild'.

The 38-year-old actress portrays Cheryl Strayed in the movie adaptation of her memoir, 'Wild: From Lost to Found on the Pacific Crest Trail', which is about Cheryl's 1,100-mile hike of self-discovery along the Pacific Crest Trail following the death of her mother, divorce and estrangement from her stepfather.

Reese has admitted the role is the toughest she has taken on in her career.

She said: ''Cheryl was brave enough to tell all the parts of her story in her book - including the parts that probably made her feel incredibly uncomfortable .. One day on set I was getting divorced, and the next day my mother died. And the next day I was having sex with a stranger and shooting heroin.''