The PixFEL project aims to develop an advanced X-ray camera for imaging suited for the demanding requirements of next generation free electron laser (FEL) facilities. New technologies can be deployed to boost the performance of imaging detectors as well as future pixel devices for tracking. In the first phase of the PixFEL project, approved by the INFN, the focus will be on the development of the microelectronic building blocks, carried out with a 65 nm CMOS technology, implementing a low noise analog front-end channel with high dynamic range and compression features, a low power ADC and high density memory. At the same time PixFEL will investigate and implement some of the enabling technologies to assembly a seamless large area X-ray camera composed by a matrix of multilayer four-side buttable tiles. A pixel matrix with active edge will be developed to minimize the dead area of the sensor layer. Vertical interconnection of two CMOS tiers will be explored to build a four-side buttable readout chip with small pixel pitch and all the on-board required functionalities. The ambitious target requirements of the new pixel device are: single photon resolution, 1 to 104 photons @ 1 keV to 10 keV input dynamic range, 10-bit analog to digital conversion up to 5 MHz, 1 kevent in-pixel memory and 100 μm pixel pitch. The long term goal of PixFEL will be the development of a versatile X-ray camera to be operated either in burst mode (European XFEL), or in continuous mode to cope with the high frame rates foreseen for the upgrade phase of the LCLS-II at SLAC.