The third Kung Fu Panda third movie is on its way to entertain the fans.

According to the Hollywood Reporter, DreamWorks Animation has received co-production status in China for Kung Fu Panda 3.

It was recently revealed that the DreamWorks has lost a significant amount of money over the years. As such, the company has undergone a major restructuring, resulting in layoffs and a smaller release slate.

This news comes shortly after DreamWorks pushed the release of Kung Fu Panda 3 back from 23 December to 28 March 2016, to avoid competing with Star Wars: The Force Awakens.

Plot rumours

"Continuing on his now legendary adventures of awesomeness," says DreamWorks, "Po must face two hugely epic, but very different threats: one supernatural and the other a little closer to home. "

Jennifer Yuh Nelson returned to direct Kung Fu Panda 3. The film is produced by Melissa Cobb, and co-produced by Jeffrey Hermann along with Jonathan Aibel and Glenn Berger, who wrote and co-produced the original films. Also Guillermo del Toro is an executive producer.

There is no official plot synopsis yet, but there are rumours that the movie will deal with Po meeting his real father.

According to a report in, "The film will likely reunite the panda Po and his biological parents since we learned that they're still alive at the end of the second film."

Po's dad was separated from his wife and son during the massacre of his home village by Lord Shen and his wolves.

At the end Kung Fu Panda 2, Po's father was seen living in a hidden village far away from the Valley of Peace with other pandas. When he learnt of Po's existence he proclaimed, "My son is alive!"

Previously it was reported the villain of the upcoming movie is reportedly the deadliest in the blockbuster animation movie franchise.

"All I can say is the bad guy in the third is possibly the most formidable villain in the series" Guillermo Del Toro told Collider.

Though there is no official confirmation on who will play voice the villain, but there are reports that Bryan Cranston (Breaking Bad) will play a key character in the movie.

The movie stars Jack Black as Dragon Warrior Po, and Angelina Jolie as the Tigress. Seth Rogen, Lucy Liu, David Cross and Dustin Hoffman will reprise their roles as Mantis, Viper, Crane and Master Shifu.

Here is a fan made Kung Fu Panda 3 trailer: