Jane Fonda, whose latest film "Old Gringo" will be released by Columbia Pictures, has reached an agreement with the studio to develop, produce and act through her Fonda Films production company.

Fonda's company, formerly called IPC Films, has produced six pictures, including "Coming Home," "The China Syndrome," "9 to 5" and "On Golden Pond.""Old Gringo" stars Fonda, Gregory Peck and Jimmy Smits in a love story.

The film is scheduled to be released later this year. The movie encountered difficulties when Burt Lancaster was replaced in the cast by Peck.