News of the deal first broke from Mr. Elliott himself, who mentioned it in a Twitter post publicizing the book's paperback edition. He later confirmed the news in a phone interview, saying he doesn't think the deal is "officially finished" but is at least final enough for him to announce with the blessing of his agent.

"If it were to be made, the idea is that James would write, direct and star in it," Mr. Elliot told The Observer. "He seems like a pretty busy guy, so I don't know when he's going to find the time for it but I hope he does."

Mr. Elliot went on to say that he is slated to consult on the project. He added that he has never met Mr. Franco, and the deal was conducted through both of their agents at William Morris. A representative at the agency confirmed that the talks were underway.

"I'm mostly hoping that people are going to say, 'Oh James Franco optioned this, so I'm going to buy it and read it because I like him,'" Mr. Elliot said. "But it would be nice if he actually made the movie too."

Mr. Elliot has not yet had a chance to read Palo Alto, Mr. Franco's book of short stories that debuts in October, but said he is looking forward to it.