"Betty is an icon, and one of the biggest stars in the world – I’m thrilled to be working with her," Simon said.
Speaking to Variety, Simon added: "Betty, I’ve worked with some serious divas but I think you could be the biggest of them all!"
Betty Boop is heading back to the big screen...
Simon's production company Syco, which also produces The X Factor and American Idol, will be producing the film with Animal Logic Entertainment.
The feisty cartoon character was originally a caricature of a jazz age flapper, and is known for her short red dress, tight, curly hair, and her signature catchphrase "Boop-oop-a-doop!"
Created by Max Fleischer, she was the first female animated star of the 1920s and has appeared in over 100 cartoons. Her last feature film appearance was in the 1988 film Who Framed Roger Rabbit?
Fleischer Studios are also on board with the film, and Chairman Mark Fleischer said of Syco: "Their energy, creativity and playfulness make them a perfect fit for Betty Boop."
Jason Lust from Animal Logic added: "I’ve been trying to get Betty to the dance for years now. Can’t believe she’s finally said 'Yes'."
Simon Cowell will be back on The X Factor this Autumn
As well as bringing Betty to the big screen, Simon will also be focusing on the latest UK series of The X Factor which he returns to this Autumn.
Simon announced his return, in February this year, ending months of speculation.
"I'm absolutely thrilled to be returning to The X Factor UK," said Simon, who had been in the US working on the American version of the show. "It's been three years since I last judged the competition and I'm excited to find a global superstar again."
"The UK X Factor has set the benchmark in finding worldwide superstars over the years including One Direction, Leona Lewis, Cher Lloyd, Olly Murs, JLS and Little Mix," he added.