HBO has been trying to make this movie for a few years, but ultimately halted pre-production two years ago.
Paterno died of lung cancer in 2012, two months after he was sacked.
The now untitled Paterno film marks Pacino's latest in a string of HBO projects, along with the Jack Kevorkian biopic "You Don't Know Jack", "Phil Spector", which followed the murder trial of the music business legend, and the mini-series "Angels in America".
Levinson will serve as an EP alongside frequent collaborator Tom Fontana, as well as Jason Sosnoff, Ed Pressman, Rick Nicita and Lindsay Sloane. HBO will produce the film in association with Sony Pictures Television.
Pacino is now the only actor tabbed to appear in the film.
Paterno died January 22, 2012 due to complications from lung cancer.
Al Pacino is tackling the Penn State sex abuse scandal head-on. While he informed an administrator, they did not call police, even after a graduate assistant and future assistant coach witnessed Sandusky in an encounter that looked like an act of sodomy with a child in the locker room showers. Levinson and Pacino's HBO movie will presumably focus more on Paterno's career as a child-molestation enabler than as a football coach.
The 77-year-old Scarface and Godfather icon will play the role of Paterno during his time as coach of Penn State University, according to Variety. He is repped by UTA.