Oscar alert! Gwyneth Paltrow will star opposite Nicole Kidman in The Danish Girl, an adaptation of the David Ebershoff novel about the relationship between the first post-operative transsexual, Einar Wegener, and his wife Greta, Variety reports. Gwyneth will play Greta to Nicole’s Einar.

The Danish Girl is set in 1920s Copenhagen. One afternoon, Greta, a portrait painter, asked her husband to substitute for an absent female model. Einar slips on a dress, stockings and woman’s shoes, beginning a metamorphosis into Lili.

After the photos gain widespread popularity, Greta encourages her husband to do more, but the harmless stunt evolves into something deeper that threatens their marriage.

Charlize Theron was supposed to play Nicole’s wife Greta in the film, which the Australia actress is also producing. Charlize recently signed off the movie, leaving Gwyneth to take her place. Gwyneth just recently finished shooting Iron Man  2, set to open in May  2010.

The Danish Girl has a tentative release date of 2011.

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