Williams, 63, who starred in the original film as Daniel Hillard and disguised himself as the Scottish nanny to take care of his children, is apparently returning to his role as Mrs Euphegenia Doubtfire in a follow-up story which is said be developed by Fox 2000, said The Hollywood Reporter.
Chris Columbus, the director of the original movie will reprise his role behind the lens, while David Berenbaum is hired to write the script.
The original film, co-produced by Williams, follows a struggling actor who, after a bitter divorce, disguises himself as an old female nanny to spend time with his children held in custody by his former wife.
Supported by Sally Field and Pierce Brosnan, it raked in more than USD 400 million worldwide.