Rampling will be portraying Reverend Mother Mohiam, a psychic character who can alter people's emotions and who works with the galactic emperor.
"Dune," based Frank Herbert's series of novels, takes place on the planet Arrakis where competing nobel families fight over a valuable resource.
Timothee Chalamet will be taking on the lead role of Paul Atreides who fights to win back the planet from the galactic emperor.
Dave Bautista and Stellan Skarsgard as the villainous Baron Harkonnen are also set to star.
Villeneuve is writing the script alongside Eric Roth and Jon Spaihts. A "Dune" film from director David Lynch was originally released in 1984.
Production is slated to start in Budapest and Jordan in the spring.
Rampling is set to receive the lifetime achievement Honorary Golden Bear at the 2019 Berlin Film Festival.
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The festival, which runs from Feb. 7 to Feb. 17, will also pay homage to Rampling's career by screening a number of her films including "The Damned," "The Night Porter," "The Verdict,""Swimming Pool" and "Stardust Memories."
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