There is already a Live-Action Little Mermaid in development with Chloe Grace Moretz staring. When I first heard about it I naturally assumed it was a Disney Production but it is actually being produced by Working Title and Universal (Which means no dancing crab ;() But now Disney really is thinking about a Live-Action take of the 1989 musical animation. (My all time favourite Disney film). And why wouldn't they with the success for Maleficent, Cinderella, The Jungle Book and the upcoming already record breaking Beauty and the Beast.
Deadline's report cautions that there is no official development up and running just yet, but that bosses at the company recently heard a new idea for how the film could work and are now deciding whether to go ahead with it. There have been discussions with big producers about the concept, including "some with a strong connection to the studio", likely pointing to Joe Roth, who worked on Maleficent, Alice In Wonderland and Oz The Great And Powerful.