The US actress rose to fame in the original 2001 film as Mia Thermopolis, a teenager who discovers she is heir to the throne of a European country named Genovia.

She starred opposite British actress Dame Julie Andrews who played her royal grandmother, while the cast also featured Mandy Moore, Heather Matarazzo and Hector Elizondo.

“Miracles happen,” Hathaway wrote on Instagram, confirming details of the upcoming third instalment.

“Back to Genovia with @adeleblim @disney @somewherepictures.

“The fairy tale continues.”

The 41-year-old confirmed the film will be directed by Crazy Rich Asians and Joy Ride filmmaker Adele Lim, with producer Debra Martin Chase.

Lim wrote on Instagram: “SHUT UP!!! Here to celebrate the Queens and Princesses in all of us.

“Over the moon to be back in the Disney family.”

The film will be produced under Hathaway’s company Somewhere Pictures.

Plot details are yet to be confirmed, but the third film is expected to continue in the footsteps of 2001’s The Princess Diaries and the 2004 sequel The Princess Diaries 2: Royal Engagement.