The holiday feature, which was picked up by Amazon in June, is based on an original story created by Hiram Garcia, and is being developed into a script by Chris Morgan, who co-wrote multiple Fast Saga movies, including Fast & Furious Presents: Hobbs & Shaw.
The Hollywood Reporter has hinted that Johnson may play the part of Santa Claus, though further plot details are reportedly being kept under wraps at this stage.
Red One, which is a tentative title, has been described by Amazon as "a globe-trotting, four-quadrant action-adventure comedy, imagining a whole new universe to explore within the holiday genre."
In a statement, the actor previously said: "Our Seven Bucks is very bullish on our partnership with Amazon Studios; underpinned with some innovation, some pioneering and a lot of positive energy and passion.
"I've been very impressed with [Amazon Studios head] Jen Salke and her team's vision and ambition to create an enormous, fun and unique 'Red one' holiday universe for families around the world to enjoy," Johnson added.
Garcia added: "Red One is incredibly special to me and a story I've wanted to tell for years."
The scribe added the movie is an "epic, edge-of-your-seat, action adventure that takes beloved holiday mythology and turns it on its head."
Kasdan is recognised for his comedic approach with his movies such as Walk Hard and Bad Teacher. The director most recently helmed the first episode of Doogie Kamealoha, M.D for Disney+.
Meanwhile, Johnson recently revealed a first-look at DC's Black Adam at the FanDome event on October 16.
Red One aims to start production in 2022 with a 2023 holiday release.
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