I'm not sure which part of this story is the most surprising -- the fact that they are really remaking My Fair Lady, or that Keira Knightley wants the lead. Decide amongst yourselves.
According to Variety, Columbia Pictures is prepping the remake, which will be produced by Duncan Kenworthy and Cameron Mackintosh, as we speak. While they are calling it an update of the musical, it's not a drastic one. The movie will keep the 1912 setting and the score, but introduce more story elements from George Bernard Shaw's Pygmalion.
They plan to develop Eliza's character a bit more, giving her additional emotional depth, and dramatizing her highs and lows. I actually really like that idea, as I always found her rather cartoonish, and her return to Professor Higgins a bit perplexing. They also plan to shoot in the real London locations, from Drury Lane to the Ascot racecourse, as opposed to the soundstages of 1964. They may top the locations, but they'll never beat Cecil Beaton's iconic and stunning costumes.