The 59-year-old actor last appeared on screen in Oscar-winning role of U.S. President Abraham Lincoln in Steven Spielberg's 2012 bio-pic.

Daniel also won the Academy Award for Best Actor in 1990 and 2008, with the latter coming when he teamed up with Paul for oil industry epic There Will Be Blood.

America's Variety magazine reports that the reclusive star is now set to reunite with the 45-year-old filmmaker for a movie set in the 1950s New York fashion industry.

Sources tell editors at the publication that although a deal for Daniel to reteam with the director is yet to be finalised, talks are ongoing.

Paul is reportedly yet to finish penning the film's script and is looking for young actresses to cast in supporting roles.

His most recent directing work came when making music videos for British band Radiohead and American harpist Joanna Newsom.

Radiohead member Jonny Greenwood has collaborated with the filmmaker a number of times, having composed the soundtrack for his last three films, including There Will Be Blood.