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.

Not that this news will do much to silence the haters but James Cameron has reportedly agreed to make sequels to Avatar his next two films. Cameron will begin working on the scripts for the two films early next year.

According the the article, the director hopes to start production later in 2011 but won’t make the decision on if he will film both sequels simultaneously until after he completes work on the scripts. Obviously, Cameron is pretty excited about the prospect of returning to the world of Pandora.

“In the second and third films, which will be self-contained stories that also fulfill a greater story arc, we will not back off the throttle of ‘Avatar’s’ visual and emotional horsepower, and will continue to explore its themes and characters, which touched the hearts of audiences in all cultures around the world,” Cameron said. “I’m looking forward to returning to Pandora, a world where our imaginations can run wild.”

With worldwide box office of over $2.8 Billion, it’s hard to argue with Avatar‘s mass appeal and sequels were to be expected. With the technology pretty much perfected now and the visuals of the world established, we can only hope that Cameron will spend a bit more time on the characters and story (And Sam Worthington’s “acting”) with these next two films, which will hopefully make them a bit easier to watch.

Currently, Cameron and Fox are looking at a December 2014 release for Avatar 2 and a December 2015 release for Avatar 3. Of course, we’ll bring you all the news on these sequels as it comes to us.