LONDON-Emily Blunt has been spotted in London as filming on the highly-anticipated sequel Mary Poppins Returns begins.

The 34-year-old actress was dressed as the iconic magical nanny, as the streets around the Bank of England in the city were transformed into scenes from the 1930s.

Wearing a dark red tailored jacket and skirt, cobalt blue shoes and a blue hat, she was seen walking up the steps of the financial building during filming on Saturday with three children following behind her.

Vintage buses and cars were seen on the roads surrounding the Bank of England as police and film security directed traffic away from the busy set, MailOnline.com reports.

Filming on the exciting sequel began just one day after the first official photo of Emily as Mary Poppins was released by Disney on Friday. The shot features The Girl on the Train star standing outside a house dressed as the nanny, and clutching her iconic carpet bag.

Mary Poppins Returns concentrates on the now grown-up Jane and Michael Banks, as well as Michael's three children, who are visited by their former magical nanny after a family tragedy.

The movie, set in 1935 during the era of the Great Depression, also stars Lin-Manuel Miranda, Meryl Streep, Ben Whishaw, Emily Mortimer, Colin Firth, Julie Walters and Angela Lansbury.

DICk Van Dyke, who played chimney sweep Bert in the original film, will also return for the sequel, set for release in December 2018.

Julie Andrews starred as Mary Poppins in Disney's 1964 movie, and won an Oscar for her turn as the magical nanny. The film was nominated for 13 Oscars, and won five, including Best Visual Effects, Best Original Music Score, and Best Original Music Song for Chim Chim Cher-ee.