Grease is the word for Olivia!

Olivia Newton-John talked to The Herald Sun and confirmed that she will be a part of "Grease 3" – but if several conditions are met. She’ll do it if John Travolta signs on too, if the Bee Gees are involved in some capacity and if original director Randal Klesier is on board. "If John did it, and the script were great, and the music was great, I would consider doing it," Newton-John said in Melbourne yesterday.

"You are following up a classic and that’s a hard thing to do. But they should get all the people who were involved in the original movie to capture that energy and get that flavour."

Earlier this month, at the Grease DVD release in Los Angeles, studio executives said they wanted to do another sequel, and ushered Newton-John and Travolta into a sideroom to get their reaction.

Newton-John is keen. Her role as good girl Sandy Olsson opposite Travolta’s bad boy Danny Zuko in the 1978 film turned them into global superstars.

But Newton-John wants Grease director Randall Kleiser and soundtrack hitmakers, the Bee Gees and John Farrar, involved in a third instalment.

A script is being worked on and no casting decisions have been made, which refutes reports her daughter, Chloe Lattanzi, or Kylie Minogue will play Sandy.