The first film was released in 2006 and has been a firm festive favourite ever since.
17 years after the hit rom-com released, the original cast of Kate Winslet (47), Jack Black (53), Cameron Diaz (50) and Jude Law (49) could be reuniting to tell the rest of their story.
"The plan is to start filming next year,” a source told The Sun.
"The main talent are all signed up.”
Another added: “The plan is to start rolling on scenes next year, primarily in the UK and in Europe, but the main talent are all signed up and on board.
"It’s one of the most successful movies of its kind and still enjoyed every year by millions of fans around the world - it makes perfect sense to revisit those characters and find out what became of their lives after they hooked up.
“It’ll be funny, poignant, and heart warming - just what everyone wants for Christmas.”
The first film released in 2006 and has been a firm festive favourite ever since.
It followed English journalist Iris (Kate Winslet) as she swapped houses for Christmas with American Amanda (Cameron Diaz) as they move on from heartbreaks with respective love interests Miles (Jack Black) and Graham (Jude Law).
Unfortunately, the late Eli Wallach passed away before the planned sequel has finally gotten underway.
Eli played the elderly screenwriter Arthur Abbott who worked through the Golden Age of Hollywood.
He was 90 when the film came out, stealing the show as Iris brought Arthur out of his reclusive and lonely life after his wife died.
He passed away in 2014 at the age of 98.
The news of a follow-up to The Holiday comes as the cast of another favourite festive rom-com are re-uniting.
Love Actually is 20 years old this year and the star-studded cast are coming together to reflect on the iconic film.
Hugh Grant, Dame Emma Thompson, Bill Nighy, Laura Linney and Thomas Brodie-Sangster are appearing in a series of interviews to discuss the success of Love Actually.
In a sneak-peek snippet of an interview with Emma Thompson, the actress reveals what it was like watching for the first time.
“Hugh came up behind me as we were walking out and said ‘is that the most psychotic thing we’ve ever been in?'”
Grant – who plays the beloved character of the Prime Minister in the film – says he thought he would “hate” performing the dance scene.
“But I will give myself the credit of having the secretary catch me,” he says.
The special episode The Laughter & Secrets of Love Actually: 20 Years Later – A Diane Sawyer Special, was on ABC in the US.