James Wan is returning to direct 'The Conjuring 2'.

The director has signed a first-look deal with film studio New Line, while it's also been confirmed that the release date has been pushed back from October 2015 to 2016.

Toby Emmerich, the President of New Line, said: ''We had a great experience with James on 'The Conjuring', and we give him a lot of credit for that movie working so well.

''He worked on the screenplay and came to the table with very inventive things that were not in the script and cast it fantastically well.

''Add to that his work in producing 'Annabelle', and he is one of the masters of the genre and we're happy to have him. You go through the list of possible directors of 'The Conjuring' sequel, and his is the name you stop at, which is why we tried so hard to make this work.''

The original movie, which starred Vera Farmiga and Patrick Wilson, proved to be a huge hit at the box office, raking in more than $300 million worldwide, and has led to a demand for a second instalment.

The move comes hot on the heels of the prequel 'Annabelle', which was directed by Wan, 37, and features Annabelle Wallis, Ward Horton, and Alfre Woodard.