John Cleese and his daughter Camilla Cleese will write and star in the series.
The new series will “explore how Cleese’s over-the-top, cynical and misanthropic Basil Fawlty navigates the modern world”.
Castle Rock Television is developing the project, with Matthew George, Rob Reiner, Michele Reiner and Derrick Rossi executive producing the series.
“What I like about Matt is that, unlike many producers, he really ‘gets’ the creative process,” Cleese said.
“When we first met, he offered an excellent first idea, and then Matt, my daughter Camilla, and I had one of the best creative sessions I can remember.
“By dessert we had an overall concept so good that, a few days later, it won the approval of Rob and Michele Reiner.
“Camilla and I look forward enormously to expanding it into a series.”
Fawlty Towers, created by Cleese and Connie Booth, originally aired on the BBC for two seasons with six episodes each in 1975 and 1979.
The show followed the misadventures of Basil Fawlty (played by John Cleese) as he tried to save his hotel and marriage.