Over a decade on from the original movie's 2007 release, Enchanted 2 - titled Disenchanted - is in early production.
Disney has announced the movie will stream via Disney+ with a release date to be confirmed.
Enchanted followed princess Giselle who found herself flung from her animated world into real-life New York.
The sequel will see Amy Adams reprise her role as Giselle. Further casting for the sequel is to be confirmed.
Alongside Adams, the original film featured Patrick Dempsey, James Marsden, Timothy Spall, Idina Menzel and Susan Sarandon and was nominated for a trio of Oscars for its songs.
Talk of a sequel has been ongoing since at least 2010 with Alen Menken, who composed the music for the original film, recently confirming he would be a part of the project.
He told Variety he was working on music for the film, although further details such as a plot or potential release date are to be confirmed.
Alongside Menken, Stephen Schwartz is returning to pen lyrics while Adam Shankman was previously attached to direct the project.