In the first movie, Jim Rhodes was Tony Stark/Iron Man's best friend and was supposed to be a major part in the sequel as the artillery-heavy hero War Machine. One scene featured Howard looking at a silver suit of armor and saying "Next time," a line that caused great delight for fans.
But there will be no next time for Howard.
Marvel had no comment, but sources close to the deal said negotiations with Howard fell through over financial differences, among other reasons. Marvel, which had wanted to work with Cheadle, then decided to take the role in another direction and approached the actor, who is shooting Antoine Fuqua's "Brooklyn's Finest" with Richard Gere and Ethan Hawke currently.
Rhodes is expected to play a larger part in the sequel, which is rumored to go beyond high-tech villains. Justin Theroux is writing the screenplay.
Jon Favreau is returning as director, and Robert Downey Jr. is expected back as billionaire industrialist Stark/Iron Man. Gwyneth Paltrow also is expected to be back as Stark's assistant, Pepper Potts.
Cheadle, most recently starred in "Traitor," a thriller on which he was also a producer. He will next be seen in DreamWorks' "Hotel for Dogs."