Spike Lee is in negotiations to direct "The Night Watchman," an original screenplay by noir novelist James Ellroy. Alexandra Milchan will produce the Los Angeles cop thriller, which Bob Yari Prods. is in negotiations to finance.

Milchan will produce outside of her deal with Regency Enterprises.

Set in Los Angeles in the early '90s, the project is described as being in the vein of Ellroy's "L.A. Confidential." An ensemble piece, the thriller/drama revolves around a cop who uncovers corruption and must resolve the problem in order to redeem himself. The film is aiming to shoot early next year.

The project, in an earlier incarnation back in the late '90s, had been set up at Regency with Bruce Berman producing and Warner Bros. Pictures distributing. At the time, David Fincher was in discussions to direct, and there was interest in Brad Pitt taking a starring role.

Lee's latest film, Sony Pictures Classics' "She Hate Me," opened Wednesday. His other directorial credits include "25th Hour," "Bamboozled," "He Got Game" and "Malcolm X." Lee is repped by WMA.

Liza Foreman reported from Los Angeles; Ian Mohr reported from New York.