Variety reports that Disney is moving forward on pre-production for a follow-up to the successful family movie. Director James Bobin and co-writer Nicholas Stoller have been asked to return.
The film picked up an Oscar this year for the song 'Man or Muppet', written by Flight of the Conchords comedian Bret McKenzie.
The Muppets, which starred Jason Segel and Amy Adams, has earned over $154.8 million (£97m) worldwide.
There is no word yet on whether Segel, who also co-wrote the script for the first film, is returning.
Segel is currently starring on the CBS sitcom How I Met Your Mother and his new movie Five-Year Engagement is due to open the upcoming Tribeca Film Festival.
Watch the music video for 'Man or Muppet' below: