James Watkins has been tapped to direct DC’s Clayface, according to The Hollywood Reporter.

The film, based on the Batman villain, features a script by horror expert Mike Flanagan. Sources reveal that DC co-chief James Gunn met with Watkins on Thursday for a final presentation, ultimately leading to his selection for the project. A deal is now being finalized.

Originally introduced in 1940, Clayface is known for his shape-shifting abilities. The film, with a budget of $40 million, is described as a Hollywood horror story about a B-movie actor who injects himself with a mysterious substance to maintain his relevance, only to discover that he can transform his face and body, turning into a living mass of clay. Production is set to begin later this year, reflecting DC’s diverse range of projects—from large-scale superhero films like Superman to smaller, more character-driven stories.

Matt Reeves, director of The Batman, will produce Clayface alongside Lynn Harris and DC Studios heads Gunn and Peter Safran. The movie is scheduled for release on September 11, 2026.

No casting decisions have been made yet, but Gunn and Safran have indicated that actors voicing characters in DC animation will also portray them in live-action. Alan Tudyk currently voices Clayface in Harley Quinn and Creature Commandos, while Ron Perlman lent his voice to the character in Batman: The Animated Series and The New Batman Adventures. Brian McManamon portrayed the villain in Gotham, and Lorraine Burroughs played Clayface in Pennyworth.