The 53-year-old action veteran - famous for his roles in 'Face/Off', 'Con Air', 'Kick-Ass' and 'Ghost Rider' - has teamed up with Hanibal Classics for the movies.
In 'Red Squad', Cage is to play a Navy SEAL who is on parole who becomes best friends with a fed-up DEA Agent and they take down a ruthless drug lord who killed the Navy SEAL's family.
In 'Zander', Cage will portray an American ex-pat based in Puerto Rico who finds out that his family-run coffee farm is at risk of being bought up by a dangerous drug lord. When he refuses to sell, he's abducted.
Producer Richard Rionda de Castro is producing both films and previously worked with Cage on Hannibal Classics movies 'USS Indianapolis: Men of Courage' and 'Vengeance: A Love Story'.
Speaking about their reunion, Rionda de Castro told Variety: "I always look for a long term relationship with my stars and it is so good to be working with Nicolas Cage and to feel the appreciation is mutual. I promise you lot of great surprises will be announced soon with co-stars on these films."
Joining the 'Red Squad' production team is Moshe Diamant, Luillo Ruiz and Oscar Generale; exec producers are Walter Josten, Patricia Eberle, Cam Cannon, Lindsey Roth and Mike Nilon.
Alexander Witt is directing from a script written by Jorge Suarez, Cam Cannon, Scott Windhauser and David Sardi.
Meanwhile, producing 'Zander' is a team made up of Rionda Del Castro, Diamant, Ruiz; with executive producers Josten, Eberle, Cannon, Roth and Nilon.
Windhauser wrote the script for 'Zander' but no director is yet attached to steer the project.
Rights to the films are up for sale at Cannes Film Festival, with shooting expected to take place in Puerto Rico in October through to the end of the year.