The BBC, which is part funding the film called 'Margaret', is making it with production company Great Meadow Productions and has also assigned James Kent as director, who previously directed the biopic of 'Elizabeth David' for BBC Four.
BBC Worldwide, which owns the distribution rights, plans to talk to broadcasters at the MIPTV market in order to secure further finance or a potential co-production deal for the drama, which is expected to have widespread international appeal.
Duncan is a multi-Bafta nominated actress and is best know for starring in Alan Bleasdale's 1991 drama 'GBH', as well as 'Shooting The Past' and starring as Servilia in the HBO/BBC Two hit drama series 'Rome'.
The Thatcher drama focuses on the year of her fall from power in 1990 when she resigned as Prime Minister to be replaced by then chancellor John Major.
Details of the drama follow Great Meadow Productions' work on a comedy drama about the former premier, 'The Long Walk To Finchley', which is due to air on BBC Four later this year.
Robert Cooper, Great Meadow Productions' co-founder, said: "Whilst 'The Long Walk To Finchley' puts Margaret Thatcher's character traits to comedic effect as she puts her first, youthful foot on the ladder to power, Margaret is a much darker examination of the final days of Margaret Thatcher's reign and a compelling look into what 11 years of power did to her.
"Love her or loathe her, we all live in Margaret Thatcher's Britain. Yet, despite her 11 years at the top, very few of us really know the woman who so utterly changed our lives."
'Margaret' is written by Richard Cottan who was behind 'Love Again' and 'Hancock & Joan'.
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