Colin and Ewan to star as brothers
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The 29-year-old Irish actor and 35-year-old Scottish star, have been cast as brothers who turn to crime.
British actor Tom Wilkinson will also star in the film, described as a romantic comedy with elements of Hitch****.
Allen, 70, shot his last two films in the UK, Match Point, starring Scarlett Johansson and Jonathan Rhys Meyers, and Scoop.
Match Point, about a fading tennis pro, received a panning from critics, and Allen originally intended to shoot his next film in Paris.
But high production costs in France meant the director
changed his mind and filming is set to take place on the £10.9 million movie in London next month.
Farrell and McGregor will play brothers who turn to crime after hitting financial problems, and become enemies.
Scoop, which is yet to hit the big screen, also stars Johannson as an American journalism student in London who finds a big story and begins an affair with an aristocrat played by Hugh Jackman.
Oscar-winner Allen`s most recent pictures have failed to win the acclaim that his hits like Annie Hall, Manhattan and Hannah And Her Sisters once did.
McGregor found fame in the cult hit Trainspotting, and has since won plaudits for Moulin Rouge, Star Wars and the stage production of Guys and Dolls.
Farrell has been cast in the big-screen remake of Miami Vice, which is due to hit cinemas later this year, but received poor reviews for his starring role in the Oliver Stone epic, Alexander.
The casting was announced in Cannes where the world premiere of The Da Vinci Code opens the film festival tonight.