John Cleese, who played Basil Fawlty in the hit show, will be coming back to write and star alongside his daughter Camilla Cleese.
The show, which was featured on BBC2 in 1975 and 1979, followed the lives of Torquay hotel owners Basil and his wife Sybil as they tried to keep their hotel and marriage alive.
The new series will explore how the dramatic and cynical Basil navigates the modern world.
Castle Rock Entertainment revealed on Tuesday it had closed a deal with Cleese to bring back the series.
The revival will also see Basil and a daughter he has just learned is his, team up to run a boutique hotel.
Cleese is also famous as one of the original members of the Monty Python comedy group.
Fawlty Towers was named the greatest British sitcom of all time by a panel of television experts for Radio Times magazine in 2019.
The new series will see actor Rob Reiner, his wife, and actress Michelle, director, and producer Matthew George and Derrick Rossi act as executive producers.
Cleese talked about the first time meeting George “he offered an excellent idea” which led to “one of the best creative sessions I can remember”.
“By dessert we had an overall concept so good that, a few days later, it won the approval of Rob and Michele Reiner.
“Camilla and I look forward enormously to expanding it into a series.”