The Railway Children Return will star Jenny Agutter who will reprise her role as Roberta Waterbury more than 50 years after the original film, Sheridan Smith and Sir Tom Courtenay.
Production company StudioCanal says BAFTA winning director Morgan Matthews will be filming in key locations from the original film, including the Keighley & Worth Valley Railway, Oakworth Station, Haworth.
Shooting will begin on locations in the UK on May 10 and the film is due to be released in UK cinemas on April 1 in 2022.
The Railway Children, released in 1970, told the story of a mother and her three children who move to the Yorkshire countryside after their father is falsely imprisoned.
It is based on a book that was written by E Nesbit and first published in 1906.
The film also starred Dinah Sheridan, Bernard Cribbins, Sally Thomsett and Gary Warren.
Call the Midwife star Agutter, now 68, was still a teenager when she shot to fame as the oldest of the Waterbury children, who stopped a steam train from hitting an injured boy by waving her red petticoats.
The sequel will feature a new generation of children who are evacuated to a Yorkshire village during the Second World War, where they encounter a young soldier who is also far from home.
The restored Blu-ray and DVD of The Railway Children includes a retrospective documentary and interviews with Agutter, Cribbins and Thomsett.