Deadline reports the actress is set to reteam with Dobkin, who helmed the 2005 comedy, and Ferrell, who had a small role in it.
The project is set around The Eurovision Song Contest – the longest running annual international TV song competition. Former winners include ABBA (1974 for Sweden) and Celine Dion (1988 for Switzerland).
The contest started in 1956 with seven western European nations. Last year's edition had 43 countries competing. At the finale in Lisbon last year, Israel was named the winner with the song "Toy" performed by Netta.
Ferrell co-wrote the script with Andrew Steele and is also producing, as is frequent collaborator Adam McKay.
McAdams most recently appeared in "Game Night" last year.