The comedians are negotiating to team up for the film, which is expected to be helmed by "Real Steel" director Shawn Levy.
"Aloha" is an island-set comedy which is developed at 20th Century Fox and it is said that Stiller, Hill and Levy will also serve as producers for the new project.
"The Muppets" scribe Nicholas Stoller is in talks to write the script, which is based on Hill's idea that he fleshed out on the set of "The Watch".
Last seen in "21 Jump Street", Oscar-nominated Hill has nabbed roles in a number of high-end films, including Quentin Tarantino's "Django Unchained", Martin Scorsese's "The Wolf of Wall Street", and Seth Rogen's "The End of the World".
Stiller, meanwhile, will next be seen in "The Secret Life of Walter Mitty" remake.
