The second film in the planned trilogy has been given the go-ahead, reports Deadline.
Machete star and frequent Rodriguez collaborator Danny Trejo is in negotiations to return for the sequel. Rodriguez expects most of the original cast to return.
"The fan response to the Machete character has been fanatical since his first appearance," Rodriguez said in a statement.
"Machete is truly a superhero and Machete Kills will be bigger and more ambitious than the first time."
Kyle Ward has written a script which is being developed by Rodriguez and his brother Marcel Rodriguez.
Machete began life as a spoof trailer in Rodriguez and Quentin Tarantino's Grindhouse.
The first movie was released in 2010 and took $44 million (£28 million) at box offices worldwide.
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