Rights holders Carl Mazzocone and Mark Burg made it clear that there is no forward movement, as of yet, for a sequel with the following statement.
"The rights are controlled by Carl and Main Line Pictures, no matter what Millennium says. Millennium simply sold the foreign rights and they will not tell us when a sequel is ready to be made. The script was developed by Carl, myself and writer/director John Luessenhop. Millennium and about ten producers came aboard only when we needed their check. Maybe they're looking for something to sell at Berlin, but they have no right to announce this sequel and if we make another it has to be as good or better than this one and that takes time."
With the success of Texas Chainsaw 3D, it is inevitable that we will see a sequel brought to the table. The question now is, when?