In a new statement, a spokesperson from Legendary has stated that Detective Pikachu 2 is still in "active development."
Speaking with Polygon, the spokesperson confirmed that despite rumours of a cancellation, work was still ongoing with the project. However, it seems the movie's writers won't be returning for the sequel.
The Pokémon Company has also declined to comment on the project, according to Polygon. It would seem strange considering how much box office money Detective Pikachu made if the movie didn't get a sequel. But, it does seem like even if the project remains in active development, this development is going incredibly slowly right now.