It seems that director Jon Favreau's superhero sequel still needs some casting work. According to The Playlist, actress Emily Blunt will not appear in Iron Man 2. Here's what an insider wrote in to the site.

"On E!'s post show at the red carpet of some party, Jon Favreau said that Fox exercised its [Gulliver's Travels] option on Emily Blunt, and that she definitely won't be in Iron Man 2. The reporter was chatting with Favreau and asking about what he can tell them about Iron Man 2. He said Mickey Rourke isn't officially cast but that he is a fan. Then she asked about Emily and Favreau said that about Fox exercising their option, which I hadn't heard before. I thought they were still trying to make it work. He said he was disappointed but didn't say anything about Scarlett Johansson replacing her or anyone else taking the role."

We'll surely keep you posted on any other casting or other news for Iron Man 2 as soon as we have more information.