The Aly & AJ pop star will portray Abby in throwback scenes for the film adaptation, which will pick up the story where season seven left off, reports Deadline.com.
Schreiber will return as the titular character after co-writing the script with series showrunner David Hollander, who will also direct.
Jon Voight is also returning as Mickey Donovan, and Kerris Dorsey will be back as Ray's daughter, Bridget.
"Deadwood" actress Paula Malcomson originally played Abby Donovan on the TV crime drama, until her character was killed off in season five.
The series was unexpectedly canceled at U.S. network Showtime last year (2020).
Following news of the cancellation, Schreiber wrote in an Instagram post, "It's hard to describe how amazing it feels to those of us in the Ray Donovan family who have been lucky enough to experience the overwhelming love and support that all of you have expressed for our show since the news broke that Ray would not return."
"What's even more incredible is that it seems your voices have been heard," the series' star went on to say. "Too soon to say how or when, but with a little luck and your ongoing support, there will be more Ray Donovan."
When it was announced that the series has been picked up for big screen adaptation, Showtime's Gary Levine issued a statement, "When 'Ray Donovan' went off our air after seven great seasons, we heard from so many of its loyal fans that they were not ready to say goodbye to Ray and the wonderfully dysfunctional Donovan clan."
"And so, for them, we are delighted that Liev and David are creating a thrilling new chapter of this iconic series," the network's President of Entertainment continued stating.