Xbox World magazine says Avalanche is hard at work on the sequel.
Just Cause 3 will be released in 2012, according to rumouring by Xbox World magazine. The latest issue states that its spies have confirmed the existence of the title.
"Our spies say devs Avalanche are hard at work as we speak, and that it's set for release next year," reads the magazine's rumour section.
Earlier this year Just Cause producer Andreas Thorsen told VideoGamer.com that Avalanche would love to work on Just Cause 3, but the future of the IP was in publisher Square Enix's hands.
"Eidos or Square Enix owns the IP. If they want to do anything else in that franchise with us I think we'd very much like to do so, yeah," he explained.
Given that Just Cause has been a successful franchise for Eidos/Square Enix it would not be hugely surprising to see a third instalment sometime in 2012. The second game hit stores in March 2010, meaning a two year dev cycle. It would add to what is already looking like a very strong year for Square Enix, which already has Hitman: Absolution, Tomb Raider and Final Fantasy XIII-2 on its release schedule.