Oscar winning-actress Emma Stone has signed a deal to star in the second instalment of 'Cruella'.

The news of 'Cruella 2' development came out in early June, just weeks after the live-action prequel to the Disney animated classic '101 Dalmations' opened in theaters, reports variety.com.

Talking about the new deal, Patrick Whitesell, Executive Chairman of Endeavor said: "While the media landscape has been disrupted in a meaningful way for all distributors, their creative partners cannot be left on the sidelines to carry a disproportionate amount of the downside without the potential for upside."

Whitesell added: "This agreement demonstrates that there can be an equitable path forward that protects artists and aligns studios' interests with talent."

"We are proud to work alongside Emma and Disney, and appreciate the studio's willingness to recognize her contributions as a creative partner. We are hopeful that this will open the door for more members of the creative community to participate in the success of new platforms."

Stone starred in and executive produced the film. Right after the release, 'Cruella' was also made available on Disney Plus.

The new agreement comes amid actress Scarlett Johansson's breach of contract suit against Disney over the company's decision to release 'Black Widow' simultaneously on Disney Plus and in theatres.