The news was announced on Tuesday by Warner Bros Pictures Group chairman Toby Emmerich, Deadline reported.
"We could not be more excited to be re-entering The Matrix with Lana," said Emmerich. "Lana is a true visionary—a singular and original creative filmmaker—and we are thrilled that she is writing, directing and producing this new chapter in The Matrix universe."
The original film, made in 1999 (before both siblings Lana and Lilly transitioned from Larry and Andy) was a massive international success, earning back its $63million budget at the box office as well as another $400Million on top of that. It won all four Oscars it was nominated for, including Best Visual Effects, Best Sound and Best Film Editing.
It also spawned two successful sequels "The Matrix Reloaded" and "The Matrix Revolutions", both released in 2003 six months apart, as well as companion animated collection The Animatrix.
The plot follows computer hacker Neo, who discovers the reality he lives in is actually a computer generated simulation created by a race of robots to sate the obliviously enslaved human race, who in the real world are being used as bio-electric power sources.
A team of freedom fighters break Neo out of the Matrix, with some believing he is a prophesied Chosen One who will free humanity and defeat the invading machines.
Neo sacrifices himself to defeat Hugo Weaving's Agent Smith in the finale, but Reeves casting confirms he clearly finds a way back for the fourth film.
The franchise also starred Laurence Fishburne, Jada Pinkett Smith and Monica Bellucci, but no word on them reprising their roles yet.