The streaming service shared a photo Friday featuring Russell, 68, as Santa, and Hawn, 74, as Mrs. Clause.
"Happy Holidays," text on the image reads. "Next year, the more the merrier."
Netflix said the film will debut in late 2020.
"The Christmas Chronicles 2, coming next holiday season," the streaming service said.
Chris Columbus (Home Alone, Mrs. Doubtfire), who is directing the sequel, told People that Russell and Hawn brought "a lot of laughter" to the film's set.
"There's a tremendous amount of respect there and a tremendous amount of love and trust, partially because they've been together for so long," Columbus said of the couple. "They just get along beautifully."
Russell and Hawn first played Santa and Mrs. Claus in The Christmas Chronicles, which premiered on Netflix in November 2018. The movie follows a widow, Claire, (Kimberly Williams-Paisley) and her two children (Judah Lewis and Darby Camp) as they attempt to celebrate the holidays following Claire's husband Doug's death. Doug is played by Hawn's son Oliver Hudson.
Williams-Paisley, Lewis and Camp will also return for The Christmas Chronicles 2. New additions to the cast include Julian Dennison and Jahzir Bruno.
Russell and Hawn have been together for over 35 years and have one son, actor Wyatt Russell. Hawn explained her reluctance to marry Russell during an episode of Loose Women in 2016.