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Soriku said:
http://www.rpgamer.com/news/Q1-2003/031603a.html

As you may have read in the most recent Japandemonium, a sequel to Sega's high-flying RPG Skies of Arcadia is in the works. While being interviewed by Kikizo, Overworks president Noriyoshi Ohba said, "The Skies of Arcadia sequel is in the planning stages at the moment."

For those that don't know, Skies of Arcadia was originally released on the Sega Dreamcast, then slightly modified and ported to the Nintendo GameCube under the name of Skies of Arcadia Legends. Players assume the role of an air pirate named Vyse who ends up in an epic battle against a powerful tyrant, the outcome of which will determine the fate of the word.

No other information on the game was given at the interview. RPGamer will continue to report on this game's details as they emerge.

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And then just recently they confirmed it again.

Awesome, because if this is indeed true and a reliable source. I will be so excited. I'm definitely planning on buying Skies of Arcadia Legends for the Gamecube, after I beat Luigi's Manison and Starfox Adventures :)