Oren Peli is eschewing the "found footage" format for a more direct narrative.
The Paranormal Activity helmer will next do Eliza Graves for Sobini Films and Icon Productions.
Loosely based on a short story by Edgar Allen Poe, Variety says the "project centers on a Harvard Medical School graduate who takes a job at an insane asylum, unaware of the fact that it has been taken over by its occupants."
The script was written by Joe Gangemi.
Sobini's Mark Amin, David Higgins and Cami Winikoff are producing alongside Icon's Bruce Davey and Mel Gibson.
Peli also has Area 51 on the way.