LeBron James -- Starring In 'Space Jam 2' ... Bring On the MonStars!

The rumors have been swirling for years, but now it's apparently happening ... "Space Jam 2" is in the works -- starring LeBron James.

Producers of the long-awaited sequel to the 1996 partially-animated classic are already in talks with Justin Lin -- of "Fast and Furious 6" fame to direct ... according to Variety.

The original "Space Jam" -- starring Michael Jordan -- shot to #1 when it opened back in the day and went on to become the highest grossing basketball movie ever (at that time) making $230 MILLION worldwide.

No word on when the flick is expected to hit theaters.