First reported by Deadline Hollywood, the film, announced Friday, will see Ferrell and Wahlberg reprise their roles as Brad Whitaker and Dusty Mayron. Sean Anders, who helmed the first film, is returning to pen the script along with John Morris.
Paramount became interested in a sequel after the original grossed $240 million worldwide, making it Ferrell's biggest hit overseas.
The studio is keeping plot points under wraps for now and it is still unclear whether or not Anders will once again step into the director's chair. Supporting castmates Hannibal Buress, Linda Cardellini and Thomas Haden Church have also not been confirmed for the sequel.
Before starring together in Daddy's Home, Ferrell and Wahlberg previously collaborated on 2010's The Other Guys.
"We don't have any problem doing heightened movies that get crazy," Ferrell said previously about working with Wahlberg on Daddy's Home. "This one is kind of in the zone of Meet the Parents in that it's pretty relatable in terms of the scenarios and relationships in it. The comedy still sometimes gets in the ceiling, though."