Lumley first revealed the news at the beginning of October during an appearance on The Chris Evans Breakfast Show on Virgin Radio UK, but the BBC has now officially confirmed that the festive special is indeed happening.
It also marks the first time the pair have been reunited on screen since their Ab Fab days.
"Playing Joanna’s on-screen sister is guaranteed to be a laugh – who doesn't love a family reunion SoHa style?" added Saunders.
Punch went on to say that the Christmas special "is going to be an absolute cracker – it's like totes fire, with all the festive feels, for reals. Slay bells!"
Its first episode attracted 7.4 million viewers, making it the BBC's second-biggest new comedy launch in recent years, behind Ludwig.
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"It's an absolute joy to be back in SoHa (South Harlesden) again," said Walsh and Rickard.
The first season followed Punch's eponymous queen bee, who relocated to South Harlesden after her divorce – a move that brought plenty of challenges, including Amanda working in retail (the horror!) and narrowly avoiding what looked set to be another failed marriage following a whirlwind romance.
Season 2 will arrive on the BBC in 2026.
Check out more of our Comedy coverage or visit our TV Guide and Streaming Guide to find out what's on. For more TV recommendations and reviews, listen to The Radio Times Podcast.
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