According to the report, Charlie and Willie Ebersol will develop the sequel, with Willie penning the script. The son of broadcasting veteran Dick Ebersol, Charlie most recently produced The Moment and NFL Characters Unite for USA Network. Charlie tweeted the news earlier on Saturday.
James has yet to confirm the project, and ESPN says the NBA star's reps have denied the report.
The original Space Jam, which was released in 1996, starred Michael Jordan and grossed $230 million worldwide.