The 43-year-old filmmaker - who is best known for his work directing 2017's Thor: Ragnarok - will direct and co-write the pilot for a potential TV series based on Terry Gilliam's 1981 fantasy sci-fi movie.
According to The Wrap, the pilot is being created for Apple, with the potential to turn it into a full series if it is well received.
Anonymous Content, Paramount Television and Media Rights Capital are co-producing the episode, whilst Waititi, Gilliam, and Dan Halstead will also serve as the project's executive producers.
As of the time of writing, no cast members have been confirmed for the show, and no further information has been revealed.
'Time Bandits' was released in 1981 and starred the likes of Sean Connery, John Cleese, Shelley Duvall, Michael Palin, and Peter Vaughn.
The story follows a young history buff named Kevin (Craig Warnock), who gets the shock of his life when six dwarves emerge from his closet and take him with them on their quest to different historical eras to steal treasure.
Kevin and the dwarves visit the likes of Napoleon (Ian Holm), Robin Hood (John Cleese) and King Agamemnon (Sean Connery) before the Supreme Being catches up with them.
For Waititi, the new project comes as he said in 2017 he'd love to tackle a standalone Black Widow movie for Marvel.
He said: "In all honesty, I reckon I could probably bring something pretty unique to any of the franchises. So, I'd love to see Black Widow. [I'd like to see] Black Widow as something crazy and a bit funnier than we expect it to be. Because we know her story and it's very sullen and very dark and her history is very dark. But! What's the funny version of that? What's the more entertaining version of that?"