Live-action is currently on the works... oh boy.
Not just one but possibly two.
I think it was mentioned a few pages back...
Oh what do you know. Yesterday, they had another announcement about the Naruto movie.
So lets do both.
Lionsgate's Naruto Live action movie: From what I recall and suspect. This was part of the deal for Kishimoto to go along with the ending and the planned sequel, "Boruto." Kishimoto is a huge fan of Hollywood movies and probably enjoyed the idea of his story becoming a Hollywood movie. Problem is that the ending happened and Naruto fell from its lofty perch. Which moved it from being made to constant production & development.
Every Hollywood Movie Company has thousands of IPs that they own the movie rights to, but never plan to actually make an actual movie out of; they have those rights to make sure their competitors don't have them, so they can't make millions from that IP. Now of course, they would eventually lose their movie rights if they didn't do anything with them, especially if those rights were given by another company. So how do they make sure they keep the movie's rights? Simple, by having a movie in constant production/development. They do this by having a guild writer write a script for them. Then they have some low level exec read it. Then they store it. More likely that script may be use for another movie later on. Sometimes they even get a director in between jobs on board as well.
That was Naruto's Live Action Movie's fate for the past nine years. Every few years or so they get a writer to write a script for a Naruto movie to assure Shueisha they are working on it. Maybe a director if they really need convincing. Then store it once they stop asking questions. Citing difficulties of some kind as justification.
If that has changed recently, it is only because of Netflix's One Piece, not anything Naruto related.
Netflix's Naruto: Apparently at some point, they gave the right to a live action tv series to Netflix. Which they then gave to one of the writers of Witcher: Blood Origins. Now Netflix is far more willing to produce the stuff that they buy the rights to; so this may actually be released. And its up in the air, if it will be another One Piece, or one of their regular live action adaptations of an anime like their Cowboy Bebop live action adaptation.
Again, this is due to the success of the Live Action One Piece; not anything Naruto related.