Tokyo-based Pal Ent. has announced it will produce a live-action version of Akiyuki Nosaka's semi-autobiographical novella GRAVE OF THE FIREFLIES, which was previously adapted by Studio Ghibli and director Isao Takahata into the classic anime feature, reports SCREEN DAILY. Taro Hyugaji (PORTRAIT OF THE WIND) will direct.

Set during World War II, the film follows a young brother and sister, who try to survive in the aftermath of the firebombing of Kobe City.

The live-action adaptation was originally set to be directed by Kazuo Kuroki, however his death from a stroke last spring forced Pal to put the film on hold. Hyugaji served as the director's apprentice on the Kuroki's TOMORROW.

Production is set to begin in September with an eye on a summer 2008 release.