IGN FilmForce caught up with Hellboy 2: The Golden Army director Guillermo del Toro, who gave the site an update on the sequel:
"We are in preproduction," del Toro tells IGN of the film, which many observers had come to believe would never get a greenlight. "Both with Hellboy 1 and Hellboy 2, they happened right at the moment when we said, 'They're not happening. It looks like we better move on.' And at that moment something happened that made them go ahead. We have Francisco Ruiz Velasco, Wayne Barlowe, TyRuben Ellingson, [and] Mike Mignola designing creatures right now, and we have the movie being budgeted in London and in Budapest. We hope to start shooting next year."
You can read more about the budget and a possible third installment at the link above.
Source: IGN FilmForce
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