Sony Pictures Entertainment has signed a deal with Ghost House Pictures to release "The Grudge 2," The Hollywood Reporter said Tuesday.

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The paper said the deal also calls for SPE to release the English-language debut film from Oxide and Danny Pang -- twin brothers who have made such hit films as "Internal Affairs" and "The Eye" in their native Hong Kong.

"The Grudge" grossed $110 million at the U.S. box office and more than $30 million in foreign markets.

Sarah Michelle Gellar, who starred in "The Grudge" in 2004, has not yet committed to the sequel, The Reporter said. But director Takashi Shimizu -- who created the "Grudge/Ju-On" franchise, will direct "The Grudge 2" -- collaborating once again with writer Stephen Susco and a producing team led by Sam Raimi.

"The Grudge 2" is expected to be in U.S. theaters for Halloween 2006.

The Pang twins plan a horror movie about a family that moves from the city to a rundown farm, and encounters a series of eerie events.