Stallone, 67, will reprise his role as troubled war veteran John Rambo, reported Digital Spy.
"Stallone, who has also written the screenplay, describes the new Rambo as his version of No Country for Old Men. Like the last film, Rambo V is produced by Avi Lerner (The Expendables 1-3)," read a statement from Splendid Film, who has bought the rights to the sequel.
Stallone had expressed some scepticism about revisiting Rambo in early 2014.
"I'd love to do another Rambo, but maybe if he works in Las Vegas. Maybe it's run its course," he had said.
