Guillermo Del Toro is set to co-direct a stop-motion version of Pinocchio.

The Mexican-born director has been creating the project for some time, first announcing his involvement in 2008, but has now confirmed he will be working alongside Mark Gustaferson - best known for his work on The Fantastic Mr. Fox - to helm the picture.

"Little by little, I realized that I should direct," he told Variety.

The story will be set in Italy between World War I and World War II, with Del Toro saying, "It was when everyone was behaving like a puppet, except for puppets."

"Guillermo has been so passionate about this project from its inception and it is an honor to have him bring his unique blend of live action and animation experience to this well-loved story," said Lisa Henson, CEO of the Jim Henson Company - which is housing the project.

The character of Pinocchio first came to prominence in a 19th century book but is best known for the 1940 animated movie of the same name. The story tells the tale of a puppet who wants to become a real boy and finds his nose grows every time he tells a lie.