Islanders Cameron Cole (13) and Hannah Talbot (12) have been named as lead and supporting actor respectively in the feature film with a working title of Imaginary Summer.
Working closely with Jersey Tourism, the film is a co-production by Hall TV and Spinky Films.
It is to be shot on location in Jersey in high-definition format and is being co- directed by Rebecca Coley and Richard Hall.
The film will be a showcase of local talent and spectacular Island scenery and will be exhibited at film festivals around the world next year.
The story is about an 11-year-old boy who is sent to live with his grandparents in the Island after being abandoned by his mother.
Lead character Jimmy moves to the unfamiliar surroundings of Jersey from a London council estate, where he had to be streetwise and city-sharp.