Talks of the movie were first brought up when Phil Vischer got a call from Universal to possibly do another VeggieTales film, mainly thanks to an executive at Universal previously being an executive at Artisan Entertainment, which was the distributor of Jonah: a VeggieTales Movie. Phil is currently giving some story ideas for what the movie could possibly be about.
The movie was first teased by Phil Vischer on the same day that the revival series, The VeggieTales Show, was announced, with Phil saying that Universal was developing it and further stating that DreamWorks will have no involvement in the movie.
Phil later clarified that the movie isn't in production at the moment, and still has to find its funding before it can fully be made and put into the production pipeline. He also stated that it was most likely going to be based around a Bible story.
In 2020, Mike Nawrocki reaffirmed that a new VeggieTales movie was in development. 
- Phil Vischer's tweet about the film
- https://www.rhemafm.com.au/mike-nawrocki-co-creator-of-veggietales/ MIKE NAWROCKI, CO-CREATOR OF VEGGIETALES, Rhema 99.7