The new sequel is set to be penned by Maggie Levin, who wrote and directed Into the Dark and My Valentine for Hulu, with Lisa Henson of The Jim Henson Company set to produce while Brian Henson will executive produce alongside Derrickson and his frequent collaborator C. Robert Cargill.
After exiting the highly-anticipated Doctor Strange in the Multiverse of Madness earlier this year, director Scott Derrickson has found his next project in the form of a sequel to the David Bowie-starring cult classic Labyrinth, according to Deadline.
He was set to return as co-writer and director for its upcoming sequel, but after reported creative differences between him and Marvel Studios, he exited the project with Sam Raimi (Spider-Man trilogy) taking over the reigns.
He would continue with the fan-favorite 2012 hit Sinister and 2014 box office hit Deliver Us From Evil before trying his hand at the blockbuster genre with the 2016 Marvel Cinematic Universe smash Doctor Strange.