Yves Guillemots, Ubisoft CEO, accidentally confirmed a sequel to Red Steel 2 for fiscal year 2009-2010.
A second entry in the franchise has always been expected, and even publically discussed by Ubisoft, but when we'd be seeing sword and gunplay again was unknown. It seems like a sequel's definitely on the way though, and soon too.
Wii Fanboy reports that Guillemots announced that "We have lots of products coming for the Wii next [fiscal] year. We have Red Steel..." Before pausing and apologising for the slip.
With that in mind it's safe to confirm that a sequel poke, slash and stab its way into stores during the next fiscal year.