The director has already been given a greenlight by 20th Century Fox. According to sources, the studio has only allowed such a film to be developed since they know Spielberg is behind it. Spielberg has never released a musical, so it will be interesting to see his take on the classic love story.
There are also rumors that a longtime colleague, Stacy Snider, will be leaving DreamWorks to work for Fox. This could be the "in" Spielberg needs to get this film made.