The confirmation was made by the rumored real life sweethearts recently after they renewed their network contracts with the Kapamilya Channel.
Written by Bianca Bernardino, "She's Dating the Gangster" tells the story of Athena Dizon, a 17-year-old girl who falls in love with her fake boyfriend Kenji de los Reyes, a gangster and a campus heartthrob.
The book debuted as online reads via Wattpad and later on published and distributed by Summit Books.
"She's Dating the Gangster" will be their third lead flick together after doing "Must Be... Love" and "Pagpag: Siyam na Buhay" last year.
Meanwhile, Kathryn and Daniel's showbiz contemporaries, actors Julia Montes and Enrique Gil, also renewed their contracts with ABS-CBN.
The event was attended by president and CEO Charo Santos-Concio and channel head Cory Vidanes.
Julia will top bill upcoming primetime series "Ikaw Lamang" opposite Kim Chiu, Jake Cuenca and Coco Martin, while Enrique is set to pair up with Julia Barretto in "Mirabella."
"Very happy and grateful to be part of ABS-CBN for another 2 years. Thank you so much for the faith and love Sir Gabby (Lopez), Ma'am Charo, Tita Cory, Direk Lauren (Dyogi), Sir Deo (Endrinal), Sir Reily and my manager Ate Veronique (Del Rosario)," she said in her Instagram account.
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