Mermaid is casting up, with Melissa McCarthy, Jacob Tremblay and Awkwafina in talks to star and lend their voices to other live-action and CG parts.
Rob Marshall is set to direct, after helming the studio's sequel to Mary Poppins, Mary Poppins Returns.
Ron Clements and John Musker were behind the animated 1989 original, which won best original song and score Oscars for Alan Menken.
Marc Platt, who worked with Marshall on Mary Poppins Returns and exec produced Guy Ritchie's live-action Aladdin remake, is producing.
Bailey, 19, is best known as one-half of Chloe x Halle, who signed to Beyoncé's Parkwood Entertainment label after gaining popularity with YouTube covers.
The Little Mermaid would be a breakout role for Bailey, whose only other screen credit is as a supporting player on Freeform's Yara Shahidi series Grown-ish.
The Chloe x Halle Twitter account posted the below tweet shortly after the news went out. »