James Cameron is in the process of converting Titanic for 3D audiences, with a planned re-release set for 2012. He recently told The New York Times that he is considering Terminator 2: Judgment Day for conversion as well. Here is what he said:

"I think the true and correct use of the conversion technology is for movies that are already done and are already beloved films. I want to do it with Titanic, maybe I'll go back to Terminator 2: Judgment Day. It has to be done right, and it has to be done with the blessing and the supervision of the filmmaker."
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About converting Titanic, James Cameron stated:

"Titanic has been out of theaters for, what, 12 years now? We're going to bring it out in 3-D as a theatrical re-release on the 100th anniversary of the sinking of the Titanic in 2012. It's an arbitrary length of time but it's a specific date -- it's a specific date that means something to people. There will be a lot of talk about the Titanic disaster in the news, and the nonfiction TV sector at that time. We're in the early stages of that process. We've been moving very slowly to make sure that we do it right, and we've basically gone to every single vendor who does 3-D conversion, that's a credible vendor, and there were seven that we have received tests from. We've analyzed the tests, in a couple of cases we sent them back and told them to remake parts of it, because it was unacceptable, and now we're baking off the different vendors against each other and we're going to choose the top two or three vendors and we're going to split the show up between them. That's our game plan. So we maximize the quality. Everybody's busy now because there's a lot of conversion work."

James Cameron also touched on the possibility that he may direct Angelina Jolie in Cleopatra before directing Avatar 2:

"I wouldn't say (Avatar 2 is) inevitable because we still haven't worked out our deal with 20th Century Fox. So we're still in an ongoing negotiation on that. Because it's a big piece of business, and I'm trying to map it out as a game plan that stretches forward 10 years. And they don't like to think that long term. We'll get it worked out, probably. I would assign a high probability to that. Whether that's my next film or not remains to be seen. There's a Cleopatra project in work, meaning that it's been in development at Sony. And it's a subject that's always fascinated me. So yeah, I've been talking to them about it but no decisions have been made. But it sounds hot, doesn't it? I mean, Angelina Jolie and Cleopatra? To me, that's like a slam-dunk. Whether I wind up doing it or not, I think it's going to be a great project."

To read more from James Cameron, check out the interview on New York Time's Arts Beat Blog.