We construct a nonlinear extension of Fermi's electrodynamics by incorporating a Born--Infeld structure that depends directly on the four-potential $A_mu$ rather than on the field strength $F_{muu}$. The resulting theory, which we call Fermi--Born--Infeld (FBI) electrodynamics, eliminates the $U(1)$ gauge redundancy by elevating the Lorenz gauge to a dynamical condition. The Lagrangian is built from the determinant of a metric-like tensor $g_{muu} = eta_{muu} + 2kappa, partial_{(mu} A_{u)}$, ensuring that the canonical energy--momentum tensor and the spin density remain unique and free of gauge ambiguities. We derive the field equations, which reduce to $partial_u(sqrt{-g}, g^{muu}) = 0$, and show that the Lorenz condition $partial_mu A^mu = 0$ emerges dynamically from retarded boundary conditions and the requirement of a positive-energy spectrum. The nonlinearities modify the propagation of longitudinal modes; we argue, via a Vainshtein-like mechanism, that the nonlinear self-interactions may stabilize the longitudinal mode, opening the possibility of a stable massive scalar photon under extreme field conditions. We also compute the spin density from the Noether current and discuss its properties. The FBI theory preserves the physical gauge of Fermi's original formulation while incorporating the regularization features of Born--Infeld electrodynamics, making it a candidate for describing electromagnetic phenomena in strong-field regimes.