"Lensing for the sequel, titled "City of Men," is slated to begin in 2006. Paulo Morelli, [Fernando] Meirelles' partner in O2 Filmes, would likely direct the gangland epic set in Rio's hillside slums.
Miramax will not be involved this time around. At this stage, no distrib is involved with the project.
Douglas Silva and Darlan Cunha, two of the young actors in "City of God," are expected to star in the sequel."
http://www.chud.com/news/july04/july28god.php3
City of God was by far my favourite movie of last year. Just such a harsh & brutal depiction of gang life in the slums of Rio de Janeiro, with a bold visual style & stunning cinematography. Probably the first movie to actually shock me and leave speachless at certain scenes for quite sometime.
The sequel.. I guess continues Lil'Ze's story & his journey into adulthood, it'll be interesting to see where they take the story.