James Cameron says that the follow-up to the highest grossing film of all time will take place underwater in the oceans of Pandora.

With the mega-blockbuster’s re-release approaching, details about the next two films have started to trickle out via the maestro himself, specifically Cameron’s hints that the second film will involve the oceans of Pandora. Given his water-related filmmaking experience (see “Titanic” and “The Abyss”), as well as his fondness for diving as a hobby.

"I think what we should do there is - because we'll have to have characters that are in and under the water - is that we should actually capture them underwater"

"We created a broad canvas for the environment of film. That's not just on Pandora, but throughout the Alpha Centauri AB system. And we expand out across that system and incorporate more into the story – not necessarily in the second film, but more toward a third film. I've already announced this, so I might as well say it: Part of my focus in the second film is in creating a different environment – a different setting within Pandora. And I'm going to be focusing on the ocean on Pandora, which will be equally rich and diverse and crazy and imaginative, but it just won't be a rain forest. I'm not saying we won't see what we've already seen; we'll see more of that as well."

He added: "Diving for shooting a movie is work. Diving for exploration is a gas. I like to keep my peas and carrots separate."

Cameron recently suggested that he may film the franchise's second and third films back to back.

Regarding the re-release of the film and the extra nine minutes that will be added, the Oscar-winner said he’ll also be adding footage to the film’s eventual special edition DVD. "We’re doing a longer version for the DVD that is 16 to 17 minutes longer," he said, "but you’ll have the choice: You can watch the nine-minutes-longer version or you can watch the original if you want to."

Source: Press Release