The Dreamworks studio, which was co-founded by the director, is teaming up with American network HBO to adapt the Arthurian legends, according to the Hollywood Reporter trade paper.

Spielberg: Honorary knighthood in 2001

Last year Spielberg produced Band of Brothers, a mini-series based around World War II which was acclaimed by audiences but received mixed reviews from the critics.

The series, expected to be called Arthur, will be told across eight episodes with Band of Brothers director David Leland said to be writing for the new project.

The budget for the series, which is expected to go into production in early 2003, is reported to be about $10m (£6.9m) per episode.

Lead role

HBO is one of the most successful producers of drama in America and was behind hits The Sopranos and Sex and the City.

Gabriel Byrne is a possibility for the lead role, according to The Times newspaper.

The Arthurian tales have long been a source of inspiration for films and television programmes.

One of the most critiically-acclaimed adaptations was John Boorman's Excalibur but there have also been musical versions, 1967's Camelot, and the comedy, A Connecticut Yankee in King Arthur's Court.