A method for the identification of compounds as inhibitors of oncoprotein action is described. A compound is identified as an inhibitor of oncoprotein action based on its ability to modulate the transcription of a reporter gene. Transcription of the reporter gene is dependent upon the binding of a fusion oncoprotein to a specific DNA binding element positioned upstream of the reporter gene promoter. The fusion oncoprotein contains a transcriptional regulatory domain from an oncoprotein and a DNA binding domain from a different protein.