Sounds like princess diaries 3 is definitely happening

Princess Diaries director Garry Marshall has revealed that he has spoken to stars Anne Hathaway and Julie Andrews for another instalment in the series.

Disney always likes to announce things, so they tell (me), 'Shut up, we'll announce it.' I work for Disney, I love working for them," Marshall said during a recent interview with Larry King.

"(Anne Hathaway) came to my office, she was quite pregnant -- now she has had the kid, but she comes in pregnant -- she puts her computer on the table, pushes three buttons, it's Julie Andrews on Skype in Long Island. And we have a meeting," he continued while adding, "This is how we work. So I hope they do it".

The first film featured a young Hathaway as an awkward teenager, Mia, who finds out she’s the heir to the throne of Genovia. After enduring a complete makeover, the sequel saw the newly minted royal in the midst of an arranged marriage.

..... Devashree Goenka