With a working title of Hottarake No Shima: Haruka To Maho No Kagami (Hottarake Island: Haruka And The Magic Mirror), the film will be directed by Shinsuke Sato.
The fantasy follows a female high school student and a fox as they search for the titular mirror in a land created from humans' abandoned possessions.
Producer Daisuke Sekiguchi, who was also behind Fuji TV's first animated feature Brave Story, began working on the project in 2005. Special software has been developed to create the film's world. Production I.G is known for producing cutting-edge animation such as Innocence and The Sky Crawlers.
'It's not in the style of Mamoru Oshii or Studio Ghibli. It has its own magical world-view. We want to create an entertaining film for families,' Sekiguchi was quoted as saying. Voice actors will be cast later this year.
The collaborative effort is being produced with an eye on a potential North American release and a slot in Cannes. The companies hope the film will be able to compete in a market which has a monopoly on the format, led by Pixar.
Hottarake Island is slated for wide release next summer.
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