Two sequels for the box office hit Avatar are currently on the works with James Cameron returning to the director's seat. Cameron signed with 20th Century Fox to produce the two films.

Cameron wants production for the second Avatar film to begin on late 2011. However, the film will not be shown in theatres until 2014,. The third film is set to hit the theaters the following year.

Avatar 2 & 3 will feature self-contained stories that "also fulfill a greater story arc".

Cameron said, "We will not back off the throttle of Avatar's visual and emotional horsepower, and will continue to explore its themes and characters, which touched the hearts of audiences in all cultures around the world."

"I'm looking forward to returning to Pandora, a world where our imaginations can run wild."

The first Avatar film broke several box office records during its release and became the highest-grossing film of all time in the U.S. and Canada and also worldwide, beating another James Cameron filmTitanic, after holding the record for more than a decade. Avatar is also the first film to gross more than $2 billion.

It was also a critical success with nominations for nine Academy Awards, including Best Picture and Best Director, and wins, for Best Cinematography, Best Visual Effects, and Best Art Direction.