Some spoilers here.  Don’t read this or the source article if you’re one of the three or four Amish people who haven’t seen Avatar yet.

Syfy has some info dished by James Cameron recently regarding some possibilities for the inevitable Avatar sequel.  First among these is the fact that it probably won’t be called Avatar 2“Certainly I don’t want to call it Avatar 2,” Cameron said at the Visual Effects Society Awards
ceremony in Century City, Calif., on Sunday, where he was honored with
the Lifetime Achievement Award. “He’s not an avatar anymore, is he?
Maybe we’ll call it
Na’vi.”

Cameron also mentioned that he would probably delve deeper into the Na’Vi spirituality more in the second film.  “I think we can see that there’s a greater receptivity to it on the
part of the audience than certainly the studio originally imagined,”
Cameron said. “We pared back on it a fair bit in the first film, and I
think we can go farther in that direction and not alienate people.” 

Finally, as for whether or not he’d direct the next film or hand it over, “I wouldn’t do that for the second film.  It’d be
premature to turn it over to somebody else right now. I think I’d have
to use a film to train somebody to be able to take the reins, honestly.
That’s how I see it.”

via Syfy

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