The production, Lazarus, will feature new songs specially composed by Bowie as well as new arrangements of his old songs. The star is working on the project with Irish playwright Enda Walsh, who won a Tony Award for the musical Once.
Lazarus is due to premiere in New York in the winter this year. The show is inspired by the 1963 novel, The Man Who Fell to Earth, by Walter Tevis, and centres on the character of Thomas Newton, played by Bowie in the 1976 screen adaptation directed by Nicolas Roeg.
It will be directed by the Belgian Ivo van Hove, whose recent London productions include Antigone, with Juliet Binoche, and the sell-out A View From the Bridge, starring Mark Strong.
Bowie is not expected to feature in the cast.