The 19-year-old Bailey, who is black, is known for acting in television and films, as well as being part of the hip-hop sister-duo Chole x Halle.
In the 1989 original "The Little Mermaid," Ariel is portrayed as a white woman known for her red hair.
It's unclear what color Bailey's hair will be in the film.
The film will be directed by Rob Marshall, known for "Chicago," and "Mary Poppins Returns."
In a statement, Marshall said:
After an extensive search, it was abundantly clear that Halle possesses that rare combination of spirit, heart, youth, innocence and substance — plus a glorious singing voice — all intrinsic qualities necessary to play this iconic role.
Production is planned for early 2020.