New Line Cinemas are looking to make
Elf 2 but only if Will Ferrell takes the lead, according to Variety.
Ferrell would receive $20 million for the project if he were to commit. Also up in the air is whether or not Jon Favreau, who directed the original, would return as well.
Favreau has first rights but should he decide to not commit, New Line executive vice president of production Kent Alterman would take on his directorial duties.
Scott Armstrong, who did some work on the first movie's script, will be writing the screenplay for the sequel.