The 50-year-old A-lister will also co-write “Eurovision” with Andrew Steele, former head writer of “Saturday Night Live,” on which Ferrell starred for years.
Ferrell was reportedly inspired by a visit to this year’s Eurovision and is thought to have been a fan since being introduced to the contest by his wife of 18 years, Swedish actress Viveca Paulin.
The movie is being interpreted as an attempt by Netflix to appeal to its customers abroad.
“The deal gives Netflix a comedy that will mean as much or more to an offshore streaming subscriber base more familiar with the song competition,” said Mike Fleming Jr, film editor for entertainment website Deadline Hollywood.
“And Ferrell becomes the latest feature comedy star to set a star vehicle at Netflix, at a time when star-driven comedies are struggling mightily on the big screen.”
Other big-name comedians signed up for projects with the streaming service include Mike Myers, Adam Sandler, Chris Rock, and Rob Schneider – all “Saturday Night Live” alums.
Eurovision, which began in Switzerland in 1956, remains a relatively obscure event in the United States, despite past high-profile winners including Celine Dion and ABBA.
No release date has yet been set for “Eurovision,” which would be Ferrell’s second Netflix project after romantic comedy “Ibiza,” which he co-produced though he did not appear in it.