Deadline reports that Hill is currently negotiating a deal to direct the project, a remake of the 1986 film about a military robot who gains sentience.
The project was first announced back in 2008, with Paul Blart: Mall Cop's Steve Carr attached to direct.
Robot Chicken writer Dan Milano has penned the film's script, while original Short Circuit producer David Foster is on board to produce once again.
Hill has directed a slew of successful family films including Hop, Alvin and the Chipmunks and Garfield: A Tail of Two Kitties.
The original Short Circuit starred Steve Guttenberg and Ally Sheedy, and went on to spawn a sequel in 1988.
Watch a trailer for the original Short Circuit below: