Travolta played Danny in Grease
John Travolta and Olivia Newton-John are to be approached to appear in a third Grease film, say reports.
Travolta and Newton-John, stars of the 1978 original, have already been told their services will be sought once a script is completed, according to trade magazine Hollywood Reporter.
The plan is to set the new project in the disco era of the late 1970s, and have the story revolve around the children of the original characters.
Didi Conn, who played Frenchie in the first film, is serving as an executive producer.
Two years ago a TV movie sequel of the film was planned by Conn.
She is said to have been instrumental in generating the studio's current enthusiasm for putting together a new installment of the film, according to Hollywood Reporter.
The original Grease spawned a sequel four years later, starring Maxwell Caulfield and Michelle Pfeiffer, but the film failed to match the success of the original.
Last year Travolta and Newton-John relived scenes from their hit film at a Hollywood party to launch the DVD of the film.
The stars performed the karaoke classic You're The One That I Want.
Speaking at the launch, Travolta said he was "staggered" by the success of Grease so long after its first screening.