The comic - who reportedly based his character Borat's look on the late music legend - is said to be the front runner to play Freddie seeing off stiff competition from Johnny Depp.
A source told Britain's Daily Mirror newspaper: "Filmmakers are working flat out to get the best possible script. Sacha loves the idea he can get away with playing Freddie after modeling Borat's look on him."
The movie is being developed by Robert De Niro's company Tribeca Productions.
Last month, it was reported that 'Pirates of the Caribbean' star Johnny was in talks to play Freddie.
'Bohemian Rhapsody' singer Freddie - who passed away aged 45 from an AIDS-related illness in 1991 - was widely considered to be one of the greatest performers in British rock history.
Sacha, 35 - who is best known for his comic alter-egos Ali G and Borat - is currently working on Tim Burton's forthcoming movie 'Sweeney Todd'.
The BAFTA winner is engaged to Australian actress Isla Fisher, 31.
And let us just point out, if Freddie Mercury were alive today, he would easily be the most bad ass gay dude on the planet... knocking George Michael down to #2