American Beauty producers Dan Jinks and Bruce Cohen will produce Milk through The Jinks/Cohen Company with Michael London, whose Groundswell Productions is co-financing with worldwide rights holder Focus Features.
Groundswell's Bruna Papandrea will serve as executive producer alongside William Horberg and Milk screenwriter Dustin Lance Black.
Milk was the first openly gay man to be elected to public office in the US when he was voted to the city supervisors' board of San Francisco in 1977. The following year Milk and San Francisco Mayor George Moscone were shot to death by board member Dan White.
'Gus Van Sant is the perfect artist to bring to the screen the extraordinary story of Harvey Milk, and we couldn't be more thrilled to join our partners at Groundswell in helping make this dream project a reality,' Focus Features CEO James Schamus said.
'The Focus team is the best in the business when it comes to provocative, socially relevant movies with world-class talent like Gus Van Sant and Sean Penn,' Groundswell CEO London added. 'We're thrilled that they share our passion for telling the story of Harvey Milk.'
Focus Features vice president of production and development David Gerson will oversee the project for production president John Lyons.
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