Love and Friendship is the screen adaptation of the novel Lady Susan about a widow in search of two husbands – one for herself and one for her daughter.
Factory Girl star Miller will take on the lead role of Lady Susan Vernon in the big-screen production.
The 32-year-old English actress is back at work after taking a year off to look after her daughter, Marlowe.
The film is to receive funding from the Irish Film Board, which will be handing out €250,000.
Shooting locations have yet to be decided, but producers are scouting in several counties to find the perfect backdrops.
Boys Don't Cry actress Chloe Sevigny has also been cast as a close friend of Miller's character in the comedy by the author of Pride and Prejudice.
It will be directed by Oscar-nominated Whit Stillman, the American filmmaker behind films Damsels in Distress and The Last Days of Disco.
Stillman compared Austen's short novel to the theatre of playwright, Oscar Wilde.
Miller was chosen for the lead role after impressing Stillman with her "freshness and verve".
The storyline follows Lady Susan as she embarks on a relationship with a married man and stirs up some controversy along the way.
In the novella, Lady Susan describes herself as "really, excessively pretty", and she uses her looks to get on in life.
She regards her daughter Frederica as an inconvenience who must be married off as soon as possible.
Austen chose not to submit the novella for publication, but her nephew, James Edward Austen-Leigh, included it in an 1871 biography of the author.