Gyllenhaal had been in talks to play Rapunzel's Prince for Pirates of the Caribbean: On Stranger Tides director Rob Marshall who will call action on the musical adaptation.
However, he had already committed to star in the indie thriller "Nightcrawler".
In that film Gyllenhaal will play a small-time Los Angeles criminal who gets caught up in the world of the city's crime journalism community.
Screenwriter Dan Gilroy (Real Steel) will make his film directorial debut on the noir film based on his own script.
The writer-director's brother, Tony Gilroy (The Bourne Legacy), is producing with Gyllenhaal, Jennifer Fox, Michel Litvak, and David Lancaster.
A five-week production shoot will take place in early October, which conflicts with the October/November shoot of 'Woods' .
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