According to The Hollywood Reporter, Walt Disney Feature Animation didn't have to look far for a story line for its sequel Toy Story 3, currently in development.
The winning premise came from Jared Stern, a participant in Disney's feature animation story development program. Stern pitched a proposal for the film, which the studio sparked to but is keeping under wraps. According to Disney, no determination has been made whether Stern will pen the Toy Story 3 screenplay himself or whether other writers will be involved
Disney has begun recruiting animators to work on a sequel to the first two Pixar-created Toy Story films. Pending new developments in the Pixar-Disney relationship, which is scheduled to expire once Pixar completes John Lasseter's upcoming Cars, Disney is working on the Toy Story 3 by itself.