He will work with work with producing partner Gary Goetzman on the adaptation of Erik Larson's non-fiction novel, according to The Hollywood Reporter.
Hanks is also considering taking the starring role in the movie after it was optioned by Universal Pictures.
In the Garden of Beasts is the true story of William Dodd, the US's mild-mannered and reluctant ambassador to Germany in 1933.
His daughter Martha initially enjoyed affairs with a Gestapo official and a Soviet spy, but slowly the family came to realise that under the exhilarating facade of Nazi Berlin lurked something brutal and terrifying.
The book was published in May under the full title In the Garden of Beasts: Love, Terror and an American Family in Hitler's Berlin.
Larson's non-fiction book The Devil and the White City is also in development by Leonardo DiCaprio and his Appian Way company.
Hanks and Goetzman are also currently developing comedy television series Players for HBO.
Watch the trailer for Tom Hanks's next film Extremely Loud and Incredibly Close below: