The summer hit, which featured the considerable voice talents of Jack Black (pic), Dustin Hoffman, Angelina Jolie and Lucy Lui, took over $550 million worldwide - making it Dreamworks' most successful film.
Speaking at a screening of forthcoming animated sequel Madagascar: Escape 2 Africa, Dreamworks chief executive Jeffrey Katzenberg announced that Kung Panda 2 was being lined up.
"We've started conversations about it, and I think in the next 30 or 60 days, we'll be able to talk completely about that," Katzenberg said.
He also added that there would be a third Madagascar film, saying, "There is at least one more chapter. We ultimately want to see the characters make it back to New York."
The second Madagascar movie, which once again features the vocal talents of Chris Rock and Ben Stiller, is released in December.