In a new interview with Iron Man 2 director Jon Favreau, the director is quoted as saying he is unsure at this point if he will be returning to direct a 3rd Iron Man movie though he did confirm that he will be an Executive Producer on 'The Avengers':
"many are already wondering whether he might return to the Marvel fold to do another Iron Man movie down the line, and after confirming that he thinks The Mandarin should be the key villain in any proposed threequel, he responded thusly, "They've asked me to be an Executive Producer on 'The Avengers' so I'll be there to help as much as the director would want me to. 'Iron Man 3' is years down the road, and that has to reflect the reality of what's been established not just in 'Iron Man 1 and 2,' but in movie time, between this film and that film, is 'The Incredible Hulk,' 'Thor,' 'Captain America,' and 'The Avengers.' I haven't had to inherit anybody else's backstory yet--it's just simply what we chose to use or not use from the comic books--so I'm feeling like I'm passing the baton and after all those movies are done, it's time to sit down and discuss if there's something I can bring to it, if it's something we want to do together, but that's way down the road."
Source:
ComingSoon.net
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