The 47-year-old comedian is said to have been in talks with the channel's boss Jay Hunt about signing a new deal after his golden handcuffs contract with ITV runs out in April.
Hill is thought to have been offered a staggering £2million to move to Channel 4 after finishing his last episode of his hit show Harry Hill's TV Burp over Easter.
A source told the Daily Mirror: 'Harry has lots of ideas and fancies doing something different for a while, especially his own film. That doesn't really fit in with ITV's plans for him so he is interested in doing a deal with Channel 4.
'They have offered him big budgets and a lot of creative freedom to make what he wants, and that what's attracts him more than the pay cheque.'
It is believed that the movie would primarily be shown on Channel 4, with the potential for cinema screenings and a DVD.
It was revealed earlier this year that Hill was quitting TV Burp, after apparently turning down a £1million pay rise, which would have increased his pay to £4million.
Hill spoke last year about TV Burp and joked that having to produce so many shows had left him suicidal.
He said: 'It is a drag. One year I did 21 shows - most series are only eight. At the end of it I was completely mental.'
Hill admitted he was getting fed up of having to watch so much television in preparation for the programme - which pokes fun at various shows.
Asked how much television he watches, Hill replied: 'I watch it all day and all night.
'Sometimes I have meetings, one day or I’ll record a show but if I’m not doing either of those two things then I’m watching TV.
'I mean, it’s a very rigorous process and you have to put in the hours – that’s the only way you can make a good show. But it’s a brain fryer - it’s like an experiment.'
The ITV show, which was called 'Genuis, pure and simple' by the Daily Mail's Sophie Heath, has earned Hill numerous awards.
As well as winning two BAFTA awards in 2008 for Best Entertainment Performance and Best Entertainment Programme, Hill took home his third BAFTA for the programme in 2009.
Hill is now said to be planning to concentrate on writing jokes for Simon Cowell's reported X Factor musical.