The boys over at Nuke The Fridge posted the news from a special screening of the movie..
"Luis is currently attending a special screening of Avatar hosted by James Cameron. Luis just spoke to Avatar producer Jon Landau. Landau told Luis that despite media reports that Avatar 2 is currently in pre production, the sequel is NOT in pre production, and there are currently no plans for a sequel at this time."
Im sure its just a matter of time though. No movie makes as much cash as
Avatar and doesn't spawn sequels. Then again, its possible after putting so many years into the first film that Cameron wants to put off another visit to Pandora for some time. Either way, lets hope he gets back behind the camera for something asap.