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From SciFi Cool:
Considering the fact that “Avatar” is a printing press for money and is now the most successful Sci-Fi movie in history, a sequel is likely a good bet. But James Cameron is a man that marches to his own beat so you can never be really, really sure…until he confirms it himself and he did last night at the Arclight theatre in L.A. in yet another screening for “Avatar”. There was a Q&A after the film with James and a couple of effects guys. James Cameron officially gives us notice with the quote:
"Yes, there’ll be another."
The next movie will be much easier to make of course. There won’t be a need to invent new tech and all the amazing art assets for the visuals will be already on someones hard drive. Maybe with the extra time they’ll have they can come up with a slightly better story to go with all the industrial light and magic. Thanks AintItCool for the word.