The new story will be set around 20 years after the tale of the classic 1964 movie that starred Julie Andrews and Dick van Dyke, said The Hollywood Reporter.
The film will also take its cues from the book series that PL Travers wrote which were published from 1934 to 1988.
Rob Marshall, who directed "Into the Woods" and "Pirates of the Caribbean: on Stranger Tides", will helm the new feature, which will also be a musical. David Magee, of "Life of Pi" fame will write the screenplay.
As detailed in Disney's 2013 period drama "Saving Mr Banks", Travers' had testy relationship with Walt Disney over the adaptation of the original. But the studio is working with her estate on the new movie.