The film, which reunites Spielberg and Hanks again after 'Saving Private Ryan', 'Catch Me If You Can' and 'The Terminal', is based on a true story.
The film tells the story of James Donovan, an attorney who was thrust into the center of the Cold War when he negotiated with the KGB for the release of downed U-2 spy plane pilot Gary Powers, said the Hollywood Reporter.
The celebrated writer-director duo's involvement in the project has added more momentum to the project which is likely to be Spielberg's next directorial vehicle after historical drama 'Lincoln'.
Spielberg is eyeing a number of projects as a director including 'Robopocalypse'. He has also agreed to helm the adaptation of Roald Dahl's children's book 'The BFG'.
The Coen brothers are noted for their films 'No Country for Old Men' and 'Fargo'. They also penned the script of Angelina Jolie upcoming film 'Unbroken'.