The film - made with the full support of Candy's wife Rosemary Margaret Hobor and children Jennifer, 43, and Chris, 38 - will reportedly give an insight in Candy's private family life off-screen.
It will also feature never-before-seen home videos, archives and family interviews.
Tragic loss: A documentary giving a never-before-seen insight into the life, career and tragic death of John Candy has been made by Colin Hanks and Ryan Reynolds (Candyy pictured 1983)
Hanks' father Tom Hanks and stepmother Rita Wilson starred with Candy in 1985 film Volunteers, with Candy also appearing in 1984's Splash alongside Hanks and Daryl Hannah.
Hanks also produces the documentary with Sean Stuart and Zipper Bros Films' Glen Zipper.
Reynolds is known for his affinity with fellow Canadian actor Candy and his friendship with his family.
On the 25th anniversary of his death in March 2019, he shared a moving video montage of the star, with the support of Candy's children.
Reynolds wrote; 'It's the 25th anniversary of John Candy's passing. We cooked up a small tribute to a comedic genius and Canadian hero. If you haven't seen much of his work, take a look at his films. He was a treasure.
Chris Candy called the video 'lovely' while Jennifer Candy wrote: 'This made me cry. It's so amazing and sweet!. He has so many people that absolutely love him, he was one of the best.'
Candy first shot to fame via his work as a member of Toronto's branch of improv comedy group The Second City in 1972. He then joined the cast on Toronto-based comedy-variety show Second City Television which was picked up by NBC in 1981 and became a huge hit.
The show won Emmy Awards in 1981 and 1982 for its writing.
Iconic: Actor Candy - who was famed for starring in films Planes, Trains and Automobiles (pictured)- died of a heart attack in 1994 at age 43.
Film: Variety reports Amazon is negotiations to acquire the untitled film directed by Hanks, 45, (L) and produced by Reynolds, (R) 46 and George Dewey via his production company, Maximum Effort.
