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The feature take of the Tony-nominated stage musical, set at Netflix, will also see Awkwafina, Keegan-Michael Key and Andrew Rannells in key roles.
Sources told Deadline, Murphy will direct and produce the Broadway hit, set to undergo production in December.
Streep will play Dee Dee Allen, a two-time Tony award winner who collaborates with Barry Glickman (Corden) in a flop musical about Eleanor Roosevelt.
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Emma, a high school senior in Indiana who isn’t allowed to take her girlfriend to the prom, becomes their cause to champion.
Casting director Alexa Fogel is on a nationwide search to find an actor to play Emma.
While Grande plays Alyssa, a popular daughter of the head of the PTA, Awkwafina plays the group’s publicist Ms Sheldon. Key is set to essay the role of Streep’s love interest and Emma’s ally, Principal Hawkins.
Alexis Woodall, Bill Damaschke, and Dori Berinstein are also attached to produce.
Bob Martin and Chad Beguelin are working on the script, with music and lyrics Beguelin and Matthew Sklar, based on the original concept by Jack Viertel.
Murphy is also attached to produce the soundtrack along with Grande and her manager, Scooter Braun.
The makers are eyeing a 2020 autumn release in theatres during the awards season before it airs on the streaming service.