The film is being put together by two of the tragic model/actress' real life friends - fashion designer Pol' Atteu and TV producer Patrik Simpson - who have written the script and declared the Barbie star is their number one choice for the starring role.
Simpson told The Sun newspaper: "We are eyeing Margot and I think she is our Anna Nicole. After we saw the Barbie movie, Margot was at the screening and I said: 'That's our Anna.'
"The way she embodied Barbie, and Pol used to always tease that Anna was the living Barbie. So who better to play her than Margot?"
Atteu added: "I can tell you when we met her, we felt something electric and it was such a beautiful moment."
Simpson went on to reveal the pair plan to reveal Anna's "secrets" in the new film, saying: "Anna was our best friend. Best friends have secrets and we promised Anna we would reveal those secrets."
Smith shot to fame as a model before later turning to acting. Her personal life was marred by controversy after she married 89-year-old oil baron J Howard Marshall when she was 26 and later became embroiled in a messy dispute with his family over his estate following his death in 1995 aged 90.
She also struggled with prescription drug addiction and died of an accidental overdose in 2007 at the age of 39 - just months after her son Daniel also passed away following a drug overdose at the age of 20.
The new biopic is believed to be the latest in a long line of movies about Anna Nicole which are believed to be in production.
Blade Runner 2049 actress Sylvia Hoeks is playing the actress in Hurricanna alongside Holly Hunter and Mark Duplass while Abbie Cornish is playing her in Trust Me, I'm a Doctor which focuses on Anna Nicole's physician Dr Sandeep Kapoor - played by Kal Penn - in the aftermath of her death.
Agnes Bruckner also previously played Anna Nicole on screen in Lifetime biopic The Anna Nicole Story which was released in 2013.
Anna Nicole was also mother to a daughter, Dannielynn, 18, and it was recently revealed the teenager is interested in following in her mother's footsteps by embarking on a career in showbusiness.
Her father Larry Birkhead told In Touch Weekly magazine: "There are times when she'll say, 'I wish I could be on that.' Like when she watched Stranger Things and the Umbrella Academy.
"If she does anything, it will be on her terms. She's determined to be her own person."
He went on to add that Dannielynn is aware of her late mother's career and legacy and is proud of what she achieved as a model and actress, which included roles in films such as The Hudsucker Proxy and Naked Gun 33⅓: The Final Insult and shoots for Playboy and Guess.
Birkhead said: "We went into the Guess store the other day, and Dannielynn saw a big poster of Anna and said, 'Oh boy, she nailed that shot.' She understands her mum was a model, and she appreciates that."
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