A follow-up to Denis Villeneuve's action thriller will focus on Benicio Del Toro's enigmatic hitman, Variety reported.
The film's writer Taylor Sheridan will reportedly direct the project, taking over from Villeneuve.
"Sicario" sees Emily Blunt and Josh Brolin attempt to hunt down a drug lord across Arizona and Mexico as part of a CIA operation.
The picture was recently screened in competition for the Palme d'Or at the Cannes Film Festival, with the award ultimately going to France's Dheepan.
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