The 39-year-old hip hop artist - who is married to Kim Kardashian West - has been in contact with the comedian to discuss plot ideas for a biopic about his rise to fame.
According to website Dish Nation, the pair have exchanged numerous emails about the film, which Kanye wants to be a comedy movie filled with lots of funny one-liners and slapstick gags rather than be a rags-to-riches tale about his ascent to the top of the music business.
A source said: "Kanye has been thinking about this for a long, long time and he has been trading ideas and discussions with Will to make a funny comedy about his life. But rather than take himself too seriously, he really feels it has to be a comedy and not a preachy film. He wants it to be an easy watch, filled with laughter just like the movies he loves."
The 'Fade' hitmaker has also been discussing his ideas with Ferrell's long-time collaborator Adam McKay as he is such a huge fan of the pair's movies which include 'Anchorman: The Legend of Ron Burgundy', 'Talladega Nights: The Ballad of Ricky Bobby' and 'Step Brothers'.
And Kanye, 39, doesn't want a big name actor portraying him on the big screen, instead he wants to play himself in the project.
The source added: "Kanye's exchanged various ideas with Will and his comedy partner Adam and doesn't want a young actor playing him. Instead, he's suggested playing the role himself, aged 13, sitting in his bedroom writing lyrics and sporting a comedy pair of braces to emphasise the point home. Will and Adam are both very open to the idea and think they can come up with enough comic material, with the help of Kanye, to put together a comedy film just as good as what they've worked on before ... They think there's huge potential there to make a classic, if not quite obscure, comedy that will appeal to more than just his fans."
The trio have worked together before when Kanye filmed a small cameo in Will and Adam's 2013 sequel film 'Anchorman 2: The Legend Continues'.
The award-winning rapper and fashion designer has made no secret of his admiration of Will and after seeing his movie 'Zoolander 2' this year he posted on Twitter that the 49-year-old actor is a "living breathing god" and called his "existence a blessing".
Kanye has also previously stated he'd be happy for Will to play him in a film of his life and compared himself to one of Will's most famous big screen characters, Buddy the Elf from Christmas movie 'Elf'.
The rap superstar previously said: "He is one of my personal gods. I would like Will Ferrell to play me in 'The Kanye West Story'. Can you make that happen?"