what is the intention of this field? Do you want your users to select the project while reporting an issue? This will bring a number of issues since there are quite a num ber of things depending on this setting. First of all the list can only contain projects for which one is authorized, then depending on the project, categories may change, available developers, custom fields and so on.
So embedding this nicely will require some proper programming using ajax functions to make it seamless.
So possible yes but there is work to do