Producers Oren Peli and Jason Blum are reuniting with writer Christopher Landon to create what the filmmakers have described as a "cousin" to the Paranormal Activity series.
According to The Hollywood Reporter the new project will be Latino, starring an all-Latino cast and dealing with the supernatural in the Catholic religion.
The project will begin filming in the next few months, under the same small budget that the Paranormal Activity movies are known for.
Paramount has found major success with all three Paranormal movies. The films have made over $575 million, with a fourth instalment due this October.
The studio released the found-footage Catholic horror The Devil Inside in January. The film was shot on a $1 million budget and managed to earn $53 million in the US.
The new, yet to be titled project is slated for a tentative January 2013 release.
Watch the trailer for The Devil Inside below: