Written by Judith Viorst in 1972, the famous children's book revolves around family members collectively enduring the worst day of their lives. Alexander's day goes from bad to worse after he wakes up with gum in his hair.
Steve Carell is attached to the project to play Alexander's dad, Ben.
In addition to quite a lot of television work, Arteta directed 2009's Youth in Revolt and 2011's Cedar Rapids.
The film is being produced by Shawn Levy's 21 Laps and the Jim Henson Company. Levy and Dan Levine will produce for 21 Laps, while Lisa Henson and Jason Lust will produce for the Jim Henson Company.