Variety reports that Diaz has agreed to star in the Columbia Pictures production.
The actress will star in Bad Teacher, a film directed by Jake Kasdan (Orange County) and written by The Office series screenwriters, Lee Eisenberg and Gene Stupnitsky.
Diaz will play a tough elementary school teacher who likes money. After her boyfriend dumps her, she will try to win the heart of a school teacher, but she will have competition as another teacher colleague locks the same man on her radar.
Jimmy Miller will produce the project through his Mosaic Media production company.
In the meantime, Cameron Diaz will star as the voice of Princess Fiona in Shrek Forever After, hitting theatres May 21, 2010. She will also share the screen with Seth Rogen in The Green Hornet, set for a December 22, 2010 release. The film is still shooting in Los Angeles. The actress is also filming Knight & Day in Boston alongside Tom Cruise. The film is expected to open on July 2, 2010.