It was Gris Grimly's Pinocchio but it's Guillermo Del Toro's now, with Mark Gustafson credited as co-director. Del Toro has given a potted history of the pass-the-parcel directorship to EW:
Gris has been part of the development of Pinocchio from the start. Originally he approached me to direct it and then I was producing for him to direct and now he's helping me produce and I'm directing. We were greatly inspired by his book. He's instrumental in the look of Pinocchio, for example, and the look of Mangiafuoco [the puppet master].
You can see Grimly's stylings in the latest concept art. Here's a scan (I think) from the current EW, as posted at Dread Central.
Click the image to expand it and read the text. There's your definitive funky monkey right there.
Elsewhere in the EW interview, incidentally, Del Toro says his idea of Gepetto is Tom Waits and that he's spoken to Nick Cave about providing music for the film. That should give you some idea of the tone he's going for.
Check out a concept model of this Pinocchio in our archive.