Kaye is working on a new format for the character, who rose to fame on BBC Two's The Sunday Show in 1995, upsetting celebrities at movie premières and press conferences.
Now Kaye is planning to develop the character - who was "killed off" in 1997 - further and move him away from showbusiness and into art.
"I'm bringing Dennis back but with a completely different personality," he said.
"He's done his time in the field, now he will have his boys do his work for him, a modern-day Fagin.
"This time around he will be more of a puppet master working behind the scenes as an art guru."
He added: "The show is at the early stages but it will be a combination of reality and comedy drama. I think it is time to bring him back although he will be reinvented as an older and wiser man."
Pennis caused several of his victims - often Hollywood stars used to friendlier questioning - to storm off in disgust.
Steve Martin cancelled a string of interviews after Pennis asked: "How come you're not funny anymore?"
Demi Moore was asked: "If it wasn't gratuitous in any way and it was tastefully done, would you consider keeping your clothes on in a movie?"
Cher also had the Pennis treatment, when she struggled to answer: "Has anyone ever told you you're beautiful - and meant it?"
Kaye - who has also starred in BBC One drama Two Thousand Acres of Sky - features in a new comedy gameshow which begins on BBC Two on 5 August, called Liar.