George Miller is returning to direct a sequel to the 2006 animated hit Happy Feet. According to The Age, Miller will begin production on the film at Dr. D, a new digital production facility in Sydney, Australia, where he will employee 438 imaging artists over the course of the next three years.

The film is being made possible by the Australian government, who are offering an assistance package. About the deal, Miller stated, "This incentive by the NSW government is a significant step. It allows us to make Happy Feet 2 in Sydney and it will be the first of many productions from our new digital studio, Dr D. It helps us in our attempts to attract substantial foreign investment which will create hundreds of high-end, highly skilled jobs as well as nurture the careers of many people coming out of our educational institutions who would otherwise have no place to grow their talents."

Happy Feet 2 is looking to hit theaters sometime in 2011.