I don't know if Kishimoto is a formal producer on this project like Oda is with the live-action One Piece but he did give his blessing and input to the director, Daniel Cretton, and has seen his previous movies (Shang-Chi, Just Mercy, Short Term 12).
https://www.hollywoodreporter.com/movies/movie-news/naruto-movie-in-the-works-1235833511/
I was iffy on the idea of a film at first but looking back on the manga arcs, I think Part 1 of Naruto could actually be structured as a solid 3-4 film series like the early Harry Potter movies.
First film is the prologue and Land of Waves where the fantasy setting is laid out and the main characters of Team 7 and their interpersonal dynamics are explored
Second film is the Chunin Exams that goes up through the preliminaries (it's basically just Hunger Games)
Third and fourth films are a two-parter that comprise the Konoha Crush, Search for Tsunade and Sasuke Recovery
