Will Ferrell made a surprise, in-character appearance on "Conan" Wednesday night and broke the news of the Paramount Pictures deal. He also regaled the audience with a flute solo.
Ferrell told host Conan O'Brien: "It's official, there will be a sequel to 'Anchorman."'
Paramount had previously turned down a musical plan put forth by Ferrell and director Adam McKay that also included a proposed Broadway stage show.
No details on the project were immediately available but McKay, producer Judd Apatow, and co-stars Paul Rudd and Steve Carell are expected to return.
The Associated Press contributed to this report.