The next Batman flick, which is tentatively titled Gotham, will have Murphy playing the role of The Riddler while LaBeouf will play the caped crusader's sidekick Robin.
Actress Rachel Weisz of The Mummy fame will reportedly play Catwoman as Christian Bale returns as Bruce Wayne along with Michael Caine to play his assistant Alfred, The Sun newspaper reported.
After the success of The Dark Knight, director Christopher Nolan has been roped in again for the next movie which is slated for a 2010 release.
"Chris wasn't sure if he wanted to do another movie but as soon as he decided to, he got the wheels in motion. Eddie's a fantastic addition. Everyone's excited to see what he does as the Riddler," a source told the newspaper.