Galaxy Quest helmer Dean Parisot is attached to direct the long-rumoured third instalment, which would follow on from 1989's Bill & Ted's Excellent Adventure and 1991's Bill & Ted's Bogus Journey.
Vulture also reports that Keanu Reeves and Alex Winter are both attached to reprise their roles as Ted and Bill respectively.
Original creators Ed Solomon and Chris Matheson have co-written the third film's script, which will reportedly "address where Ted and Bill are in their lives today".
Winter has previously teased that the third film will focus on modern rock music.
Parisot is also scheduled to direct the sequel to 2010 action comedy RED.
Watch a trailer for Bill & Ted's Excellent Adventure below: