The star is negotiating a part in the Sony remake of the music drama of the same name from 1976, according to Deadline.
Singer Jordin Sparks and Mike Epps are also attached to appear in the remake, which charts the story of a girl group similar to The Supremes.
Sparks will be taking on the lead role in the new film, making her movie debut as the title character while Houston would play her mum.
Houston last appeared in a movie in the 1996 flick The Preacher's Wife.
The movie is set to begin shooting in October.