The writer behind Crazy Rich Asians and Disney's Raya and the Last Dragon is set to direct Princess Diaries 3.
Hathaway portrayed Mia Thermopolis, an awkward high school student who discovers she is the princess of Genovia.
Royal Engagement, the sequel released in 2004, centers on Mia's quest to find love in a hurry.
Hathaway had previously shared her desire to reprise her role as Genovia's new queen.
"I would more than entertain it," she said in 2022. "I'm pulling for it. If there's any way to get Julie Andrews involved, I think we would make it work."A formal deal regarding Hathaway's involvement has not been inked.
Debra Martin Chase returns to produce the movie's third chapter, and Naia Cucukov is an executive producer.
"I'm beyond excited to be a part of bringing the third iteration of this beloved franchise to life," Lim said. "We look forward to celebrating its core tenants of female power, joy and mentorship with audiences worldwide."
