The Dictator is a loose adaptation of the novel Zabibah and the King, which was a best-seller in Iraq in 2000.
Paramount Pictures said the film would tell "the heroic story of a dictator who risked his life to ensure that democracy would never come to the country he so lovingly oppressed".
It will be released on 11 May 2012.
Alec Berg, Jeff Schaffer and David Mandel - writers on Seinfeld and Curb Your Enthusiasm - have been recruited to pen the script.
The Dicator will be directed by Larry Charles, who worked with Baron Cohen on both the Bruno and Borat comedies.
Although Zabibah and the King was written under the pseudonym "The Author", it is believed it was written by ghost-writers carefully supervised by Hussein.
Sacha Baron Cohen Saddam
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