In a story from Variety, it seems that Katia Lund (co-director of City Of God) will be directing Dancing Arabs.

Budgeted at $5 million the movie is an adaptation of Sayed Kashua's autobiographical novel which has the same title.

Kashua will be adapting the screenplay.

The film follows Kashua, as a small-town Arab-Israeli whose high marks in school got him into a Hebrew boarding school. While there he took on the Jewish-Israeli identity of a friend who was confined to his home.

"Growing up bicultural in Brazil raised questions about identity, which are not mine alone, but have driven me as a filmmaker," stated Director Lund. "Dancing Arabs exposes the strains and fractures of identity in a childhood and adolescence where borders are increasingly confused."

She plans to use non-professional or little-known actors. The film will shoot in Jerusalem in Hebrew and Arabic from late 2009 or early 2010.