The film, directed by Gary Rydstrom, who previously wrote and directed the 'Toy Story Toons: Hawaiian Vacation', is a musical, reported The Verge.
The movie is set to be inspired by 'A Midsummer Night's Dream'. The music in it will reportedly be composed of hits from the past six decades.
Lucas is also executive producing, and David Berenbaum, who wrote 'Elf', created the screenplay. The film's voice cast includes Alan Cumming, Maya Rudolph, Alfred Molina, and Kristin Chenoweth, among others.