Get ready for some more high-flying martial arts action, because Deadline reports that The Weinstein Company are putting a Crouching Tiger, Hidden Dragon sequel into production in May of this year. Ronny Yu, who directed thirteen Chinese films before churning out American duds like Freddy vs. Jason and Bride of Chucky, is set to direct, while writer John Fusco (Hidalgo, The Forbidden Kingdom) will write the screenplay with Harvey Weinstein producing. None of the cast from the original has signed to return yet, but at least one major character should be back if they stick to the source material. More below!
Crouching Tiger was based on the fourth book in the Crane Iron Pentalogy, and this new film will be based on Silver Vase, Iron Knight, the fifth book in the series. Ang Lee is reportedly not going to be involved in any way, but the story here follows Michelle Yeoh's character Yu Shu Lien from the first movie, so chances are looking good that she'll return. But it sounds like we'll also see some new faces, too. Here's what Fusco told Deadline:

"This introduces a new generation of star-crossed lovers, and a new series of antagonists in a battle of good and evil...There is an alternate universe in the books, a martial forest that exists alongside the real world, full of wandering sword fighters, medicine men, defrocked priests, poets, sorcerers and Shaolin renegades. It’s so vast and rich, and I found characters from the second and third books in the series to create a most interesting stew while being as true to the source material as I could be.”

Weinstein is obviously a savvy businessman, so he must realize he'll make a boatload of cash overseas with this sequel even if it doesn't perform well here in the States. Plus, Fusco seems confident that fight choreographer Woo Ping Yuen will return for Silver Vase, Iron Knight, and his inventive work on the first movie was a huge part of what made that film a pop culture touchstone. I think Yuen coming back is our only hope of this actually turning out well, so I'm hoping the 68-year-old legend is up for the task. Casting starts after Yu signs on the dotted line, and production starts in May with a $20 million budget. Stay tuned.