On November 11, 2016, DreamWorks announced that production for the sequel was cancelled.  According to reports, there had been doubts about proceeding with the project before Universal's acquisition of DreamWorks, and it was DreamWorks' decision to cancel the film.  However, in September 2017, DreamWorks and Universal revealed that the movie was back in production with a release date scheduled for September 18, 2020. It was also confirmed that the original actors would reprise their roles.  However, DeMicco, the co-director of the first film, won't be returning as he is directing Vivo for Sony Pictures Animation.  In October 2017, it was reported that Joel Crawford will serve as director and Mark Swift is set to produce.  On October 5, 2018, it was announced that Peter Dinklage had joined the cast to voice Phil Betterman.  In April 2019, the film's release date was moved to December 23, 2020.  In October 2019, DreamWorks revealed that Kelly Marie Tran had replaced Dennings as Dawn while Mann was still confirmed to be part of the cast.