According to this New York Craigslist ad, a company called Megamonolith Pictures is holding an open casting call for a film entitled "Titanic 2: Mermaid Saviors." And yes, they claim that the action in their movie will pick up right where after the Titanic sinks.

So, in essence, there may be a sequel made, but it won't be from any of the original people from Titanic. In other words, James Cameron is not involved. Although, reading the synopsis of the movie, it's not hard to imagine this film springing from his imagination after witnessing what he came up with in Avatar.

Again, according to the ad, "the film begins moments after the sinking of the Titanic. All who have drowned are brought back to life by a futuristic race of mermaids, called the Mantocks, who welcome the humans to their underwater paradise. Soon after, JACK DAWSON is elected king of the underwater humans. DAWSON requests that all humans be returned above water, a request that is denied by KING MANTROCK. The humans are slowly brainwashed into worshiping their mermaid saviors. Meanwhile, the sunken TITANIC has become a haunted underwater wasteland inhabited by RAGGARO and his band of mermaid pirates. Will the humans ever free themselves from their mermaid slavery? Will the mermaid pirates wage war on Mantock?"

man, just just can't make this shit up... wtf? *chuckles*