The film follows the story of a soldier in a war against aliens who is forced to re-live his last day alive again and again after he is killed, reported Contactmusic.
Through having to re-live the same experiences he gets better at tackling the days challenges. Blunt would play another soldier who fights alongside him.
Warner Bros were impressed with Blunt's tough girl credentials when she was cast as female lead in 'Man From U.N.C.L.E' project - which was halted after the studio couldn't find a male star and director Steven Soderbergh dropped out.
'The Devil Wears Prada' star has previously said she was looking for a role in a sci-fi or superhero film where the female character had substance.
"Usually the female parts in a superhero film feel thankless. She's the pill girlfriend while the guys are whizzing around saving the world.
"I'm open to any kind of genre if the part is great and fun and different and a challenge in some way. I would love to do a comic-book movie or a science-fiction film that would scare the life out of me."
'All You Need is Kill' is produced by Erwin Stoff, Tom Lassally and Jason Hoffs. The script was originally written by Dante Harper and is being re-worked by Joby Harold, who is also executive producer.