Based on the YouTube character created by Lucas Cruikshank, the film followed an extrovert teenager called Fred Figglehorn on his misadventures.
Despite being widely panned by critics, Lionsgate has hired John Fortenberry to direct a sequel called Night Of The Living Fred, based on a script by Fred: The Movie director David A. Goodman.
"Fred's journey from internet character to media star has been nothing short of astounding, and we're excited to partner with Lionsgate to bring the second feature film based on Fred's hilarious adventures to life," Varsity's Brian Robbins told The Hollywood Reporter.
"Fred has already conquered the online world and achieved record ratings for Nickelodeon, and we believe he's ready for his feature film debut," Lionsgate president of motion picture development Michael Paseornek added.
Production on the sequel to Fred: The Movie has already begun in Los Angeles.
Watch the trailer for Fred: The Movie below: