Director Rian Johnson took to social media platform X to confirm Craig would reprise his role as Benoit Blanc in the upcoming Netflix movie and reveal the movie's title would be Wake Up Dead Man: A Knives Out Mystery.
"I love everything about whodunnits, but one of the things I love most is how malleable the genre is," Johnson said.
"There's a whole tonal spectrum from (John Dickson) Carr to (Agatha) Christie, and getting to explore that range is one of the most exciting things about making Benoit Blanc movies.
"We're about to go into production on the third one and I'm very, very excited to share the title, which gives a little hint of where it's going.
"The next Benoit Blanc mystery, the follow-up to Knives Out and Glass Onion, is called Wake Up Dead Man."
Netflix also shared the news on its Tudum site.
"That's right, Daniel Craig is back as the suave Southern investigator in Wake Up Dead Man: A Knives Out Mystery, a new instalment of the whodunnit franchise written and directed by Rian Johnson," it said.
"Blanc will be unravelling a brand-new murder mystery in an as-yet-undisclosed setting, surrounded by a new cast of suspects."
The first Knives Out movie was released in 2019 when Craig's private detective Blanc was hired to investigate the death of best-selling author Harlan Thrombey (Christopher Plummer).
He joined forces with nurse Marta Cabrera (Ana de Armas) to uncover the truth.
In 2022's Glass Onion: A Knives Out Mystery, Craig's character was in Greece investigating tech billionaire Miles Bron, played by Edward Norton.