DreamWorks SKG has announced a theatrical sequel to Shrek, its blockbusting animated movie which has already grossed in excess of $110m after just two weeks on release in North America.

Writers Ted Elliott and Terry Rossio, who penned the film, have been hired to write the sequel, it was announced in a statement by DreamWorks principal Jeffrey Katzenberg.

In addition to Shrek, Elliott and Rossio also co-wrote Disney's Aladdin, DreamWorks' The Road To El Dorado and Columbia's live action adventure The Mask Of Zorro. They acted as story consultants on Antz for DreamWorks.