Chris O'Dowd and Olivia Colman will also star in the project, which is based on an original story idea by Frost.
The romantic comedy centres around an unlucky man (Frost) who decides to rediscover his passion for salsa dancing due to his fondness of his new American boss (Jones).
Up All Night's James Griffiths will make his directorial debut for the film, while Misfits scribe Jon Brown will write the screenplay.
The film will be produced by Big Talk Productions and co-financed by Studiocanal and Film4.
Big Talk's Nira Park told Variety that the project was a "quick development compared to other projects we've worked on.
''With Cuban Fury there was a great one-line pitch and the idea of Nick dancing was funny. I've always wanted to do a dance movie and this is a great romantic comedy with massive dance sequences and a real UK sensibility rooted in reality."
Nick Frost added that the film will help conquer his "weird fear of dancing" and that he has been salsa training for the past few months.
"This fear spoilt my wedding,'' he said. ''But this film will hopefully show that it's not just about aesthetics and that you don't have to look incredibly beautiful to be a good dancer.''
Frost will also executive produce the film, which should begin filming in the UK in seven weeks' time.
The Shaun of the Dead star will lend his voice to the upcoming Ice Age 4: Continental Drift.