Scott Derrickson, who directed and co-wrote the 2016 film "Doctor Strange", will helm a new instalment of the movie.
A search for a writer to pen the script is about to get underway, according to hollywoodreporter.com.
Actor Benedict Cumberbatch will return as Stephen Strange, the good doctor turned master of the mystic arts, as will Benedict Wong, who played his right-hand man, Wong.
Rachel McAdams, who played Stephen Strange's love interest, is likely to return as well.
Doctor Strange was last seen de-materializing in the $2 billion-grossing "Avengers: Infinity War", where one of his lines of dialogue served as the inspiration for the title of the fourth Avengers movie, "Avengers: Endgame".