Titled "Dream Doll", the film will trace the life of Handler who founded Mattel in 1945 and created the now-iconic Barbie doll, in 1959. The doll is named after her daughter Barbara, reports "variety.com".
Handler was diagnosed with breast cancer in 1970 and died in 2002.
"The world should know about the phenomenal woman behind the doll," said Handler's daughter Barbara and granddaughter Cheryl Segal.
"We have chosen to work with Rita Wilson, Cristan Crocker, Andrea Nevins and Bron Studios to bring Ruth's story to life. Working with them on this project seemed like a perfect fit because we feel that they recognise just how inspiring and empowering Ruth was," they added.
Oscar-nominated screenwriter Melisa Wallack will adapt the script, based on the 1995 memoir "Dream Doll: The Ruth Handler Story".
"Everyone knows the iconic Barbie, which, after more than 60 years, continues to be one of the most globally successful dolls," Wilson said.
"But few know the story of the inspiring, innovative, passionate woman who defied odds to create her. Ruth Handler's story awes, empowers, and sometimes infuriates. What an honour it is to be part of the team that will bring Ruth's autobiography to the screen. I am so thankful to the Handler and Segal families for trusting us with this incredible woman's life," Wilson added.
( With inputs from IANS )