Slated for an autumn 2011 release, the game will be available for Xbox 360, Playstation 3, Wii and the Nintendo DS and 3DS.
Described as a '3D musical adventure', Happy Feet Two the Videogame will have music from the three-time Grammy winning band Ozomatli.
Samantha Ryan, SVP of production and development at Warner Bros Interactive Entertainment, said: “The game’s all new, controller-based dance system uses the player’s rhythm to enhance the dancing competitions, and the gameplay lets kids interact with their favourite characters from the film.”
Players can manipulate the environment around them to solve co-operative puzzles, as well as using dance moves to recruit penguins.
The 3D film sequel will open in November and features the vocal talents of Elijah Wood, Robin Williams and Brad Pitt.
The title will be developed by US studio WayForward, specialists in character-licensed games.