Insidious was one of the biggest box office surprises of 2011, raking in an impressive $54 million domestically and over $150 million worldwide, from just a $1.5 million budget. Jason Blum will also return as producer, as will Insidious executive producers Oren Peli, Steven Schneider, and Brian Kavanaugh-Jones.
No plot details were given for the sequel, and it isn't known if Insidious stars Patrick Wilson and Rose Byrne are reprising their roles. The original horror tale revolved around a young boy, who has become possessed by an evil spirit.
Alliance Films, which financed Insidious, is on board to finance the sequel, and distribute it in Canada, with FilmDistrict distributing the project domestically. The producers hope to start production later this year, with a 2013 release being targeted.