The Bodyguard star will appear as John James, a single father who moves to a farm with his two kids after a painful divorce. Soon, his daughter (Ivana Baquero of Pan's Labyrinth) starts behaving ominously, and Dad begins to suspect that the burial mound in a nearby field might have something to do with it.
Costner most recently starred in and produced Swing Vote and Mr. Brooks.
The New Daughter is adapted by John Travis from a story by John Connolly, published in his 2005 short fiction collection Nocturnes.
The Spaniard Luiso Berdejo is attached to direct in his feature debut, and filming begins early next year.