The Aluminum Falcon said:

Wait I thought that he cancelled the making of a remake due to negative fan reaction. Didn't he say that he's focusing on Evil Dead 4, with Bruce Campbell as Ash?

I think that is what happened a few years ago. Then this little tidbit just surfaved last month:

http://dailyblam.com/news/2011/01/24/ghost-house-films-to-review-evil-dead-remake-script-this-month

So it looks like the remake is still more likely than the sequel, though personally I'd rather have the sequel. Especially in this age of ancient actors returning to reprise their old roles (Indy, Rambo, Rocky), a series like The Evil Dead, which hasn't taken itself seriously since before its first sequel, it seems like it would be very fitting. I already love how the trilogy starts out with an Ash who looks like he is in his early twenties, a sequel (I still maintain it is a true sequel with an extended prologue retelling the first film in brief with extra characters removed for simplicity, and not "actually a remake" as so many claim it is) where he looks like he is in his late twenties, and a third film where he looks like he is in his thirties. A sequel featuring a fifty year old Ash seems more than appropriate, in fact, I think it would be awesome!