"Manisha has said yes for the movie. It will be a sequel to 'Bhoot'. Manisha is playing one role in the movie, but it is a very prominent role," Varma told IANS.
The sequel is said to be called "BHHOOo.!".
While "Bhoot" narrated the story of a couple in a haunted apartment, Varma says the sequel is about a six-year-old child.
"The sequel to 'Bhoot' has a different storyline. The film basically revolves around a six-year-old girl. (But) I can't talk much about the film now," he said.
The shooting of the film has already started with a young girl named Allayna. Southern actress Madhushalini is also a part of the cast, but the lead male actor for the film is yet to be finalised.
The sequel will be shot using 3D technology. It is slated to release by August end.