Recently the BBC.COM sat down to do a retrospective article on the The Blair Witch Project. While doing the piece the subject of a third Blair Witch film was talked about.

Apparently this is something that the Blair Witch creators Eduardo Sanchez and Daniel Myrick are currently working on. Here is what Sanchez had to say on the subject:

"Ideally, each Blair Witch film would be a completely different kind of movie. We've thought about doing a film that takes place in the late 1700s and looks like a [Stanley] Kubrick movie with gritty looking people and lighting. But now, we're thinking about going back and and seeing what happened directly after the first film finished. I think it will have some kind of video element in it, but it won't be a first person hand-held movie."
Evan Jacobs at Movieweb
Evan Jacobs