Saw director Kevin Greutert to make Paranormal sequel

The film was shot in the director's house in San Diego

A sequel to the hugely successful horror Paranormal Activity is going into production, with Saw VI director Kevin Greutert taking charge.

The Hollywood Reporter says the sequel has been scheduled for release in October, the same week as Saw VII.

Oren Peli, who wrote and directed the first film and is producing the second, said "fans will not be disappointed".

The film, shot in Peli's own home, is one of the most profitable movies ever, costing just $15,000 (£9,000) to make.

Paranormal Activity, which was shot on a video camera, first opened in the US last September with midnight-only screenings in 12 college towns.

But it quickly developed a nationwide buzz via word of mouth and an online marketing campaign.

The fictional movie, filmed like a homemade documentary, follows a young couple coping with supernatural phenomena in their home.

The film took $22m (£13.5m) in its first weekend on nationwide release at the end of October, trouncing the sixth instalment of the horror franchise Saw.

The movie took more than $100m (£60m) at the North American box office after only five weeks of national release.