According to The Hollywood Reporter, the movie would mark Schwarzenegger's first big-screen role since leaving office as Governor of California.
Transformers producer Lorenzo di Bonaventura is backing the Lionsgate project with The Good, The Bad, The Weird helmer Jee-Woon Kim attached to direct.
Schwarzenegger is said to be circling the role of a sheriff in the crime thriller, which pits the sheriff against a cartel leader on his way to Mexico.
The former governor of California and Stan Lee are collaborating on a multiplatform superhero project dubbed The Governator.
The Predator star previously said that he was looking at a number of possible scripts for his next film.