Anne Hathaway teases 'story breakthrough' on The Princess Diaries 3

Anne Hathaway has revealed there has been a "story breakthrough" on The Princess Diaries 3.

The 43-year-old actress played Mia Thermopolis in the previous movies and has given a positive update on the long-awaited third installment after a previous script was scrapped.

Hathaway – who is expecting her third child with husband Adam Shulman – told SiriusXM's Radio Andy: "I'm busy making baby No. 3 and that has sort of taken the place of knowing exactly when I can make Princess Diaries 3.

"But I can say I think we had a story breakthrough. I think we are moving in the right direction. The script that we were working on – we kind of had to start over with this new direction, which is not the update I think anybody wants, but we all feel really good that this is gonna be the one."

The Princess Diaries 3 is set to be a continuation of the franchise based on Meg Cabot's novel of the same name that centres on Mia, who discovers that she is the heir apparent to the throne of Genovia.

At the end of the 2004 sequel, Mia is crowned queen of Genovia after Parliament abolishes the law requiring a queen to be married first.

However, she gets together with Nicholas Devereaux (Chris Pine) after calling off her wedding to Andrew Jacoby (Callum Blue).

Cabot recently claimed that she was "so excited" that a third Princess Diaries movie is being made.

She told The Hollywood Reporter: "I'm so excited there is a third movie. I read a script, and it was amazing. I told them not to send anymore, because I love it so much. I have a problem keeping my mouth shut.

"I'm very happy with what I've read so far, but there's definitely some book thing that were involved in the last script I read."

Producer Debra Martin Chase revealed last month that the team behind the film are "more than hopeful" of making The Princess Diaries 3 a reality.

Speaking to People, she said: "We are more than hopeful. We are moving in that direction. We've done a lot of groundwork.

"We had hoped to be shooting this year. So, it's coming. We're intent upon making it happen.

"And we're excited that the people are excited. Every time something happens and we get the thing, it's like, ‘Yay, okay, keep going!'"

Director Adele Lim is attached to helm the sequel, and she recently described the goal as "wish fulfilment for queens".

She told Variety: "We just want to make the story right because it is a franchise that is so beloved by so many people.

"There are so many movies that are wish fulfilment for princesses, we don’t have a lot of wish fulfilment movies for queens. That’s what we are setting out to do here, to show a woman in her full power."