A sequel for Inuyasha called Hanyou no Yahahime: Sengoku Otogi Soushi was announced on May 8th, 2020. Viz Media has made a statement confirming that the show will air on North America and Latin America as Yashahime: Princess Half-Demon. They’ve also announced that the show will be available for purchase both digitally and physically.
Teruo Sata, who previously worked as director on numerous episodes of Aikatsu!, Tales of the Abyss, Yaitake!! Japan, will be directing the series. Along with him will be Kaysuyuki Sumisawa, who previously worked on episodes and movies for Dragon Ball Z.
Below is the official Viz Media description for Yashahime: Princess Half-Demon taken from their blog.
In Feudal Japan, Half-Demon twins Towa and Setsuna are separated from each other during a forest fire. While desperately searching for her younger sister, Towa wanders into a mysterious tunnel that sends her into present-day Japan, where she is found and raised by Kagome Higurashi’s brother, Sota, and his family.
Ten years later, the tunnel that connects the two eras has reopened, allowing Towa to be reunited with Setsuna, who is meow a Demon Slayer working for Kohaku. But to Towa’s shock, Setsuna appears to have lost all memories of her older sister.
Joined by Moroha, the daughter of Inuyasha and Kagome, the three young women travel between the two eras on an adventure to regain their missing past.
The official website for the anime is also available here. It shares some art of the heroines which you can see below. Towa is wearing a suit, Setsuna has hair tried into a ponytail, and Moroha wields a bow and a sword.
Yashahime: Princess Half-Demon is still under development. Viz Media plans on handling the North American and Latin American releases when production is read.