The highly-anticipated follow-up to Crouching Tiger, Hidden Dragon is set to be a prequel.
The martial arts classic became a worldwide sensation 14 years ago, grossing over $213 million (£133 million) at the box office.
Studio bosses at The Weinstein Company are finally moving ahead with another installment, entitled The Green Destiny, and it has been revealed the film will be set before the original.
Actress Michelle Yeoh, who portrayed warrior Yu Shu Lien, is set to reprise her role, but Oscar-winning filmmaker Ang Lee will not return to the franchise - Yuen Woo-ping, who served as an action coordinator on the 2000 movie, will take his place behind the camera.
Filming is slated to begin in Auckland, New Zealand in July (14), with additional locations in China.