The BBC said the drama would appeal to children and adults alike.
Piper, 23, has become one of the BBC's brightest stars since appearing in an adaptation of The Canterbury Tales in 2003.
Last year, she played Hero in a modern day retelling of William Shakespeare's Much Ado About Nothing. Her role as Doctor Who's sidekick, Rose Tyler, saw her named most popular actress at the National Television Awards.
BBC drama boss Laura Mackie said: "Billie Piper is an extremely versatile actress whose talent has deservedly been recognised by critics and audiences alike."
The Ruby In The Smoke will be adapted by Adrian Hodges, the writer behind Rome and the recent period drama about Charles II.
