Child actress Dakota Fanning will appear in a controversial new movie featuring paedophile scenes.

War of the Worlds star Dakota, 12, has signed up to appear in Hounddog.

The screenplay calls for Fanning's character to be raped in one explicit scene and to appear naked or clad only in "underpants" in several other horrifying moments.

A source close to the film said: "The two taboos in Hollywood are child abuse and the killing of animals.

"In this movie, both things happen." Fanning's mother, Joy, and her Hollywood agent, Cindy Osbrink, see the movie, written and directed by Deborah Kampmeier, as a possible Oscar vehicle for the pint-size star.

But despite Fanning's status as a bankable actress - whose movies, including last year's War of the Worlds have earned more than half a billion dollars since 2001 - the alarming material seems to have scared off potential investors, according to the New York Daily News.

The film charts the life of a girl who is abused and finds solace in the music of Elvis Presley.

Fanning's carefully choreographed rape scene has already been filmed. But then the production - which also stars Robin Wright Penn, David Morse and Piper Laurie - was stopped because of a lack of money.

But emergency investors were found and the movie is set to be finished by the end of the week.

"It's not just the rape scene - the whole story is challenging Dakota as an actress," Fanning's agent, Osbrink, said.

"And I've never been so proud of her in my life. In every scene she gets better and better."