James Cameron will combine his signature 3D magic with the incredible acrobatics of Cirque du Soleil in an untitled film that is now in production. The film will be a narrative about a magical world that the lead character finds himself in.
Cirque du Soleil performances will be featured, and are being culled from various live performances of the troupe. Cameron is shooting the footage of the Cirque du Soleil in 3D.
Cameron serves as producer, the movie will be directed by Andrew Adamson (Shrek,Chronicles of Narnia). Cirque du Soleil financed part of the film, and there are plans to make a series of family-themed films using the performers.
Deadline reports that the film is about a third finished, and currently shopping distributors. It seems likely that Cirque du Soleil paired with well-done 3D might be pretty amazing to watch.
As for other Cameron projects, Avatar 2 and 3 are listed as being in the pre-production phase.