The Latino Review brings us the following:
In terms of story, the first sequel will pick up after the events of the first film, when Jake Sully (Sam Worthington) permanently transfers his consciousness to his Na’vi avatar and begins a new life with Princess Neytiri (Zoe Saldana) after they defeat the human colonizers.
James Cameron told MTV NEWS
“It would be a continuation of their story and I expect that those nasty humans didn’t go away forever: ‘Oh, well that didn’t work!’ ” he said.
Nasty humans, huh? Well guess what cool kids! We know who one of those nasty humans are going to be. In fact, according to top level sources, a bad guy human general is going to be played by someone who hasn’t worked with James Cameron in almost 20 years. Ready? It’s none other than…
…ARNOLD SCHWARZENEGGER! BOOM!