A third instalment of the hit animated franchise Monsters, Inc is currently in the works at Pixar, as per US media reports.

The news was announced in the Wall Street Journal, American entertainment news portal Variety has reported.

Directed by Pete Docter, the first film hit theatres in 2001. It revolved around two monsters, Sulley and Mike, working for an energy company which requires them to scare children. However, things change after meeting a human girl.

The second instalment titled Monsters University, released in theatres in 2013. Directed by Dan Scanlon, the film centred around Mike and Sulley joining Monsters University in order to graduate as the scariest monsters on the planet.

The films turned out to be immensely successful for Pixar. While the first film grossed over USD 528 million at the box office, the second part grossed over USD 700 million.

Further details about the plot and voice cast are kept under wraps.

Pixar also has the films Toy Story 5, The Incredibles 3 and Coco 2 in the pipeline.