Wolfgang Peterson, who directed The NeverEnding Story in 1984, is revisiting the fantasy genre. However, the results might be a little spicier this time.

Moviehole reports the German filmmaker, who has also helmed action-dramas like Das Boot and Air Force One, is developing a live-action adaptation of Paprika, based on a 1993 novel by Yasutaka Tsutsui. Originally serialized in Marie Claire, Paprika concerns an experimental machine that allows therapists to enter the dreams of their patients. When several prototypes are stolen, it’s up to a young therapist, Paprika, to stop a series of murders by entering the dream world herself.

If the title sounds familiar, you might have picked up one of several manga adaptations, or seen the animated film of the same name, which was released by Sony in 2006. The movie, directed by Satoshi Kon, has been praised for its visual style and integration of 2-D and 3-D animation.

No word yet on when Peterson will get to filming the live-action Paprika. His last film was the 2006 flop Poseiden, and he split from the Orson Scott Card adaptation Ender’s Game, which now appears to be in limbo. However, Peterson has been mentioned as director of Uprising, an alien invasion flick tentatively scheduled for a 2010 release, and is set to produce Chris Palmer’s sci-fi drama A Spell for Chameleon.

Frankly, this project sounds like it could be a welcome return to form for Peterson, who seemed to be on a roll from the mid-90’s (In the Line of Fire came out in 1993) through 2000’s The Perfect Storm. The source material has the potential for nail-biting suspense and strong visuals — exactly the kind of thing he’s shown an adeptness for — although if it becomes a Hollywood production, perhaps the violence will be toned down compared to the animated film. Now if only his terminated Superman vs. Batman film would get back on track...