Amanda Seyfried is also confirmed for the second installment with original cast memebers Meryl Streep, Colin Firth and Pierce Brosnan also expected to return, reported Deadline.
Ol Parker wrote the screenplay and will direct the film.
The sequel to the 2008 ABBA-themed romance musical "Mamma Mia" will hit the US theatres on July 20 next year.
Baranski starred as Diane Lockhart for seven seasons on "The Good Wife" and is currently reprising her role in the CBS All Access spinoff "The Good Fight".
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