Estevez, 28, is Sheen's daughter with his high school sweetheart Paula Speert. He has two other daughters with his second wife, Denise Richards, and twin boys with Brooke Mueller, reported Ace Showbiz.
"It's impossibly a most wondrous day. My bucket list is a thimble!," Sheen said.
The 'Anger Management' star had revealed the news that he was going to be a grandfather early this year during an appearance on 'Late Show with David Letterman'.
"Me as a grandfather, Dave... I don't know. It's like the world's going to crack in half. It's fabulous. It's just not a title I'm ready to adopt," he had said.
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