In what will be the first outing for the Muppets as members of the Disney family, ABC has given the greenlight on a Muppet version of THE WIZARD OF OZ, reports VARIETY. The long in the works project will be produced by Jim Henson Prods. and Fox TV Studios. Debra Frank (HOME ALONE 4) and Steven Hayes (HEY, ARNOLD) will be penning the screenplay, which will be based on L. Frank Baum's novel, not the 1939 MGM musical. The Muppet characters are set to star as the Scarecrow, Tinman and Cowardly Lion with a human playing Dorothy. Internet rumors have attached Natalie Portman as the possible lead. This won't be the first time the Muppets have ventured into classic stories, which have included their own versions of A CHRISTMAS CAROL, TREASURE ISLAND and IT'S A WONDERFUL LIFE.