The latest actor to wear the Spider-Man mask, Holland will reprise his role as the webslinger in the film that is scheduled to be released on July 16, 2021, ScreenRant reported.
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The deal will allow Spider-Man to appear in another Marvel Studios film, IGN reported.
Amy Pascal, who produced "Spider-Man: Homecoming" and "Spider-Man: Far From Home," will also produce the yet to be named the third installment under Pascal Pictures.
"I am thrilled that Spidey's journey in the MCU will continue, and I and all of us at Marvel Studios are very excited that we get to keep working on it," Feige said in a statement, according to IGN.
But the statement also acknowledges that Sony will continue to develop its own Spider-verse, IGN reported.
The partnership between Sony and Disney's Marvel Studios began in 2015, according to The Hollywood Reporter, and allowed the 2017 release of "Spider-Man: Homecoming" and appearances in 2016's "Captain America: Civil War," 2018's "Avengers: Infinity War" and this year's "Avengers: Endgame."