Justin Monjo is writing the script and they've done a test with Animalogic (who did Happy Feet and Guardians of Ga'Hoole). Lin said:
This is good news compared to what they have planned for the Tom and Jerry movie. That apparently will be a live action/animation hybrid like Scooby-Doo and Alvin & The Chipmunks. (Tom and Jerry will also deal with how the two first met).[I]t really looks like a mix of Shrek as far as the three Bone characters and their comedy, their Looney Tunes or Marx Brothers comedy set in a Lord of the Rings world. We’ve met with several directors and we hope to come to a director decision by January and Jeff Smith has been very intricately involved in the development process with us.
I can only hope that Bone actually gets made and it comes out great. Back in October, there was talk of perhaps making it a trilogy. There's no way they could or should try to tell the entire story in one movie. We just have to wait until January to hear who will direct. But at least we have some progress, finally.
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