Patrick Wilson, Rose Byrne, Lin Shaye, and Ty Simpkins will reprise their roles in the film which James Wan, who directed Insidious, will call action from a script written by Leigh Whannell who also wrote the first film.
The original revolved around a young boy, who has become possessed by an evil spirit.
Made for just $1.5 million, the film went on to bring in over $150 million worldwide.
Jason Blum will return to produce.
Brian Kavanaugh-Jones, Oren Peli , Steven Schneider, and Charles Layton are executive producing.
Production on the sequel is set to begin on January 15, 2013, in Los Angeles
Wan will now have two horror films opening in the summer (The Conjuring hits July 19th).
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