According to The Sun newspaper she will write the script based around the girl group's most famous songs.
The project was thought up by Mamma Mia! producer Judy Craymer and Simon Fuller - the original manager of the Spice Girls.
Saunders made a cameo appearance in the group's 1997 ill-fated film Spice World as a fashionable woman/party guest - possibly based on her character Edina Monsoon.
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