Rob Marshall, who is renowned for his prowess with musicals, is directing the darkly comic mash-up of classic fairy tales.
Story follows the Baker and his wife (Blunt) as they venture into the woods to confront the witch (Streep) responsible for putting a family curse on the childless couple.
Baranski participated in a reading of the script back in October where she played Cinderella's mean-spirited and demanding stepmother.
As with Chris Pine and Jake Gyllenhaal, who are circling the princely roles of Cinderella and Rapunzel's self-absorbed love interests, Baranski has not received an offer yet. However, an individual familiar with the project has told TheWrap she's in talks to join the cast, though a scheduling conflict with "The Good Wife" is one obstacle that must be overcome.
Marshall is directing the film from a script by James Lapine, based on his book for the 1986 musical. Stephen Sondheim wrote the Tony-winning original score, and Marshall's longtime collaborator David Krane is working on musical arrangements for the film. John DeLuca is producing the movie, which is expected to start production in the fall.
Baranski, who hasn't been seen on the big screen since 2010's "The Bounty Hunter," previously worked with Marshall on "Chicago," the Oscar-winning musical in which she played Mary Sunshine. The Emmy-winning actress also co-starred alongside Streep in the Universal musical "Mamma Mia!" She's represented by UTA and Viking Entertainment.