Meryl Streep, Pierce Brosnan, Colin Firth and Amanda Seyfried are among the stars who will reprise their roles in the new movie, which will be called Mamma Mia: Here We Go Again.
It is expected to be released in July 2018 - a decade after the original.
The first film was set in Greece and told the tale of a bride-to-be's attempts to find her real father.
It featured 20 Abba songs including Dancing Queen, The Name Of The Game and Super Trouper.
Producers say the new film will feature a number of Abba tracks which were not in the original.
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