M. Night Shyamalan will write and direct his next film, the fantasy thriller "Lady in the Water," for Warner Bros. Pictures.

Blinding Edge Pictures will produce, with Sam Mercer and Shyamalan serving as producers.

"Water" centers on the superintendent of an apartment building who finds a rare type of sea nymph swimming in the apartment pool.

Shyamalan has written and directed a series of blockbusters -- "The Sixth Sense," 'Unbreakable" and "Signs" -- for the Walt Disney Co. He had a two-picture, first-look deal with the studio, and his most recent feature, "The Village," was made under that deal. Disney and Shyamalan discussed "Lady," but the two decided mutually to part ways on the project.

"We have a terrific relationship with Night, and although we didn't agree creatively on this particular project, we look forward to working with him in the future," a company rep said.

Warners also would like to see the filmmaker remain in its fold in the future.

"I hope that it is the first of many outstanding films that Night makes at our studio," Warner Bros. president Alan Horn said in a statement.

Said Shyamalan: "Since we met a few years ago, Alan and Jeff (Robinov, Warners' president of production) have gone out of their way to offer me the best on their studio slates time after time. I felt their personal connection to my movies. 'Lady in the Water' is a personal movie with a big idea, and it seems just perfect for Warner Bros. I'm thrilled they responded to the story, and we all can't wait to get started."

The film will be shot in Philadelphia, where Shyamalan has made all of his movies. Casting is under way, and production is set to begin in August for a July 21, 2006, release.

Shyamalan is repped by UTA and attorneys Stephen Breimer and Marc Glick.