This rumor's been terminated.
A spokesperson for 20th Century Fox told The Hollywood Reporter that the 66-year-old actor and former Governor of California will not have a role in the sci-fi follow up that would reunite him with the filmmaker who famously launched his career with 1984's classic The Terminator.
Word that Schwarzenegger was being considered for Avatar 2 first appeared in Latino Review, which quoted sources as saying Ah-nuld would play a "bad guy human general."
While that actually sounds pretty badass, unfortunately it's false—at least for now.
But who knows? Perhaps a fanboy petition can persuade Cameron otherwise.
In the meantime, the King of the World just announced last month that he's prepping not two, but three sequels to his 2009 blockbuster smash Avatar. To that end, Cameron has hired screenwriters Josh Friedman to script Avatar 2, scribes Rick Jaffa and Amanda Silver to write Avatar 3 and Shane Salerno to pen Avatar 4.
All three films will be shot simultaneously with shooting set to begin next year and will be released in December 2016, 2017 and 2018.
As for Schwarzenegger, who also starred in 1991's Terminator 2: Judgment Day and 1994's True Lies for Cameron, he's hard at work making a big screen comeback. After having an extended cameo in The Expendables 2 and toplining The Last Stand this year, he's slated to star in The Expendables 3, reprise his role as Conan the Barbarian in next year's The Legend of Conan as well as supposedly return as the T-800 in a fifth Terminator installment.
No word if he'll still try to resurrect that talked-about Twins sequel.