The 1996 comedy, co-wrote and starred by Sandler, remains one of his most popular films.
Netflix made the announcement at its upfront presentation on Wednesday, Variety reported.
In the original movie, Adam Sandler played the lead role of Happy Gilmore.
The movie revolves around Gilmore playing hockey while struggling with anger management issues.
After learning that he has a talent for golf, Gilmore begins playing professional golf to earn money to save his grandmother’s house.
Christopher McDonald, who played the antagonist in the first movie, said in March that Adam Sandler had shown him the first draft of the film’s script, which stirred up a sequel rumor.
“I saw Adam [Sandler] about two weeks ago, and he says to me, ‘McDonald, you’re gonna love this,’” McDonald said.
“I said, ‘What?’ He says, ‘How about that,’ and he shows me the first draft of ‘Happy Gilmore 2.’ Maybe you should cut that out [of this audio] because I don’t wanna be a liar, but he did show me that, and I thought, ‘Well, that would be awesome.’ So, it’s in the works.”
After its release in theaters in 1996, Happy Gilmore earned around $40 million at the worldwide box office.
Sandler touched new heights of fame following the success of the movie and became a household name in comedy movies.