Streep won Oscars for Sophie's Choice and Kramer vs Kramer

It would be Streep's first musical, although she sang in Robert Altman's Prairie Home Companion last year.

"She was always at the top of our wish list," Mamma Mia creator and the film's producer Judy Craymer told Variety.

It is hoped the movie will replicate the success of the stage show, which is currently playing in 16 countries.

Featuring 22 Abba songs, including The Winner Takes It All and Dancing Queen, the musical has made more than $1.6bn (�900m) in ticket sales around the world.

'Powerhouse'

Streep is expected to play Donna, whose daughter Sophie is about to be married and spends the musical trying to find out the identity of her father.

"She encapsulates the spirit and energy and has the powerhouse qualities that character requires," Craymer said.

Filming is due to take place in London and Greece later this year.

Actor Tom Hanks' production company Playtone is producing the film, with Abba songwriters Bjorn Ulvaeus and Benny Andersson named as executive producers.

The screenplay is being written by Catherine Johnson, who wrote the book that accompanies the stage show.