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The Frost/Nixon star will take on the role of Aro, the leader of the Italian Volturi vampire clan, in the sequel to last year's vampire romance Twilight.
Discussing the character, director Chris Weitz said: "Michael’s role is so important because he’s the head of all vampires. Aro is, on the surface, a very gracious and friendly vampire, but beneath that he is a tremendous threat."
Weitz added that he had "aggressively" pursued Sheen for the part.
Filming on New Moon began in Vancouver last month, with a scheduled release date of November 20. Eclipse, the third film in the franchise, has been handed a summer 2010 release.
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