Nintencast, an European Nintendo gaming site, it reporting that Red Steel 2 has been confirmed by the Official Nintendo (UK) magazine.  I believe that Nintenocast is telling the truth, but I am going to wait until I see the scan.  Here’s a blurb from Nintencast post:

Official Nintendo Magazine has today finally announced in their latest issue, that Red Steel has officially got a sequel. Called “Ubisoft’s worst kept secret”, they could finally tell readers that the game had been in development for almost a year.