Speaking on SiriusXM’s Radio Andy, Hathaway said the creative team had experienced a “story breakthrough” and was now confident they were heading in the right direction.
“The script that we were working on… we kind of had to start over with this new direction,” she said. “We all feel really good that this is going to be the one.”
The actress, who will reprise her role as Mia Thermopolis, now Queen of Genovia, said work on the film is continuing, although production has yet to begin as she is currently expecting her third child.
The sequel was officially confirmed by Disney in 2024, with Adele Lim attached to direct.
While no release date has been announced, Lim has previously hinted that fans can expect the return of familiar faces from the original films.
Released in 2001, The Princess Diaries launched Hathaway’s career and was followed by The Princess Diaries 2: Royal Engagement in 2004.
Together, the two films grossed around $300 million worldwide.