CI Games announced that Sniper: Ghost Warrior 3 was in development the other day, but it appears the Lord of the Fallen team is also working on a sequel to action-RPG released back in October. According to Eurogamer, the Executive Producer Tomasz Gop had confirmed the sequel and stated that they are indeed already "working on vision and concepts for Lords 2," without revealing any details.
As for Lords of the Fallen itself, it had a few flaws, but it still managed to offer a compelling action RPG experience, in line with games like Dark Souls. You can read our thoughts on the game here in our review.