The film, which was developed by Media Rights Capital, is a comedy about a man and his teddy bear.
The feature will mix live action and CG with MacFarlane also co-starring and providing the voice for the title character. The Hollywood Insider blog says the story centers on a seemingly normal man who, as a child, made a wish that he could talk to his bear, only to have his bear come alive.
The bear grows up alongside the man but one day the man's girlfriend poses an ultimatum: her or the bear. Sources told HI that MacFarlane wants to cast Mila Kunis, who has voiced Meg Griffin on Family Guy since 1999, as the girlfriend.
MacFarlane wrote the script with Family Guy cohorts Alec Sulkin and Wellesley Wild. He will produce with MRC, Scott Stuber and John Jacobs.
Deadline says the plan is for the film to go into production this year.