The Scottish actor has already recorded most of his dialogue for the stop-motion Netflix film.
Ron Perlman, Christoph Waltz, Tilda Swinton, and Ewan McGregor are also reportedly set to appear in the film.
Back to the Future mastermind would step in for Paul King.
Disney lines up the star of its next live-action remake.
“[T]he idea was to do Pinocchio during the ascension of fascism in Italy, with Mussolini,” del Toro says.
Six-time Oscar nominee may also direct the film.