According to The Hollywood Reporter, Chu has entered negotiations with Paramount following G.I. Joe: The Rise of Cobra director Stephen Sommers' decision not to return for the sequel.
Law-Abiding Citizen director F. Gary Gray was originally rumoured to be the favoured candidate, but Chu's success with Never Say Never, which has so far grossed over $50 million against a budget of only $13 million, was reportedly the deciding factor in his selection.
Channing Tatum is expected to reprise his role as the film's lead character Duke, but some of the film's main roles may need to be re-cast if the likes of Joseph Gordon-Levitt and Sienna Miller decide not to return.
Production on the currently untitled sequel is expected to begin later this year for a release in 2012.