The 30-year-old actress, who starred as a young Donna Sheridan in Mamma Mia 2: Here We Go Again, set tongues wagging after she posted a snap enjoying herself on the island of Vis in Croatia – the filming location for the 2018 sequel.
James seemed to further fuel the fire of rumour by posting a series of ABBA show tunes on her Instagram story – something fans quickly picked up on.
“Mamma Mia 3? Please?” one commented.
Another added, “Is this a hint of another Mamma Mia?”
James has been open about how much she enjoyed stepping into Meryl Streep’s shoes for the sequel last year, which grossed almost $395 million worldwide.
“It was so much fun to try and think about what Donna would be like at 20, having so much to draw on from this magnificent woman and character that Meryl Streep created in the first movie,” she told The Hollywood Reporter last year.
“I just love it, and I watched the film over and over and over again. I gave it my all, and I just wanted to capture the essence of what Donna was and is. I just kind of had to try and own it.”
While no third movie has been confirmed, James has previously pitched ideas for a follow-up film.
“We laughed that it could be ‘Mamma Mia! The DNA Test’. You finally find out who the dad is,” she told RadioTimes.com
Meanwhile, Christine Baranski said she would be up for a third film too: “We’re ready for the next sequel because it’s just so much fun to do.”