The original television series told the story of a community of creatures known as the Fraggles, who live in a world located in a hole behind a man's wall.
Fraggle Rock premiered on television in 1983, as a co-production between CBC, Henson Associates, HBO and Britain's Television South.
The movie adaption of the musical puppet series created by Henson, who died in 1990, has been in the works for nearly a decade, but the signing of Hollywood heavyweight Gordon-Levitt is a major lift for the production.
"The first screen personas I ever loved were Henson creations, first on Sesame Street, and then on Fraggle Rock," Gordon-Levitt told Variety.
"Jim Henson’s characters make you laugh and sing, but they’re also layered, surprising, and wise. From Oscar the Grouch, to Yoda, to the Fraggles. I’ve never stopped loving his work, even as a young frisky man, and on into adulthood. Collaborating with Lisa Henson makes me confident we can do something that Jim would have loved. I’m grateful and excited to be working with New Regency on this project."