Avatar 'first of a trilogy'
Speaking to MTV News, the Titanic director said he has ideas for the next two instalments in his head.
"I have a trilogy-scaled arc of story right now, but I haven't really put any serious work into writing a script," he added.
Despite the lengthy production time for Avatar, Cameron is not daunted by the task of making two new movies, adding that the process will be much easier now that the performance-capture technology has been developed already.
"From the time we capture and finish the capture, it's literally nine to 10 months to get the CG characters working, to get their facial musculature working," said Cameron.
He said that the actors will be able to step back into their characters, which will fit them like a glove, he added.
"So a lot of the start-up torque that had to be done for one movie really makes more sense if you play it out across several films," he concluded.
Avatar topped the US box office at the weekend.