Streaming giant Netflix has announced a sequel to KPop Demon Hunters, the platform’s most watched movie of all time.

The sequel will be the first project under co-directors Maggie Kang and Chris Appelhans’ new and exclusive multi-year deal with Netflix.

The announcement comes as industry insiders predict that the film could win at the Academy Awards on March 16, where it has two nominations for best animated feature and best original song.

The song Golden won a Grammy for best song written for visual media — the first time a K-pop song has won at the prestigious music awards.

The original film follows main characters Rumi, Mira and Zoey from the K-pop group Huntr/x as they grapple with fame and their secret lives as demon hunters.

In the announcement first made by Netflix on social media, Kang said: “I feel immense pride as a Korean filmmaker that the audience wants more from this Korean story and our Korean characters”.

“There's so much more to this world we have built and I'm excited to show you. This is only the beginning,” Kang added.

KPop Demon Hunters has become a global phenomenon, winning best animated motion picture and best original song at the Golden Globe Awards.

In January, Netflix said KPop Demon Hunters had broken the platform’s records with more than 480 million views over half a year.

Golden, the animation’s most popular track, went up to number one on the Billboard Hot 100.