Alliance Films is moving ahead with plans for a follow-up to last year's supernatural hit "Insidious" says Variety.
Writer-director James Wan and actor/writer Leigh Whannell, are in talks to return for the sequel.
The original revolved around a young boy, who has become possessed by an evil spirit.
There's no word yet if stars Patrick Wilson and Rose Byrne will reprise their roles as the parents
Made for just $1.5 million, the film went on to bring in over $150 million worldwide.
The production hopes to begin later this year ahead of a 2013 release.
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