Bradley Cooper is attached to star and has been developing the project as a producer.
Spielberg also will produce with Andrew Lazar via his Mad Chance Productions along with Peter Morgan.
Jason Hall (Spread) wrote the script and will executive produce. Sniper will now be a Warner Bros./DreamWorks co-production, with Warners handling domestic.
A first-quarter 2014 start date is being targeted.
The book, whose complete title is American Sniper: The Autobiography of the Most Lethal Sniper in U.S. Military History, reveals how Texas native Kyle came to record the highest number of sniper kills for an American. The book has been praised for its frankness in telling a first-person account of a warrior who shoots from far and close distances.
Kyle made news earlier this year when he tragically was killed at a shooting range by a fellow vet in February.
The book spent 18 weeks on the New York Times best-seller list and 13 weeks at No. 1. Cooper's production company, 22nd & Indiana Pictures, and Mad Chance optioned the rights to the book a year ago.
Sheroum Kim is overseeing for 22nd & Indiana while Jon Berg shepherds for Warner Bros.
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