According to British newspaper The Daily Mail (a far more respectable publication than something like The Sun!) their "inside sources" have told them that producers are, "...hoping to land British star Emily Blunt to play the villain in the next Iron Man instalment."
You might remember that Blunt was up for the role of Black Widow before Scarlett Johansson but had to drop out due to other commitments. That and the fact she worked with Captain America: The First Avenger director Joe Johnston on The Wolfman makes it easy to believe she may still have a good relationship with Marvel Studios.
"They are desperate to have Emily as the villain in the next Iron Man film and will continue to have Gwyneth playing Pepper, though she won’t feature in The Avengers."
What do you guys think about this information? The paper also talk about Scarlett being in The Avengers as if it's new news (showing their lack of comic book movie knowledge I suppose). Could it be possible that she's actually the villain in that movie instead? I think that Emily would make a great Madame Masque!