The new incarnation follows Pete (Oakes Fegley) whose parents died in car crash. He has been subsequently raised by the dragon named Elliot in a forest now threatened by loggers.
Other characters include a forest ranger, along with a mill owner's young daughter (Oona Laurence) and greedy brother.
Redford will play a local who tells tall-tales involving dragons that no one believes.
The original 1977 film combined an animated dragon character with a live-action cast including Sean Marshall, Mickey Rooney, Red Buttons and Shelley Winters.
"Ain't Them Bodies Saints" director David Lowery and Toby Halbrooks were hired last year to write the adapted script, from which Lowery will direct. The update reinvents the core of the original concept but won't feature songs. While the dragon in the original was traditionally animated, in the remake he will be a CG animated creation
Jim Whitaker will produce the update.
Production starts in New Zealand this fall, not far from where Redford's currently filming "Truth" a film adaptation of the 2005 memoir "Truth and Duty: The Press, The President, And The Privilege Of Power" with Cate Blanchett in Australia.
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