According to New York Magazine's Vulture blog, it seems Jon Favreau, loyal directing of the Iron Man franchise, has parted ways with Marvel Studios in directing the much-anticipated third installment.
"Insiders tell Vulture that Favreau has just informed Marvel Studios that he won't direct a third Iron Man film. [Some] industry insiders look at Favreau's growing price tag and speculate that he was getting too expensive for the equally frugal Marvel and its parent company, Disney. In fact, one Hollywood player familiar with Marvel's playbook theorizes that the company had been pushing a confusing and packed vision of the third film as a tactic to provoke Favreau into leaving the project.
Receiving $10 million for the Iron Man sequel, it's unclear what he'd be seeking for a third film, but reps familiar with these sorts of gross participation deals tell Vulture that he likely would command $12 million to $15 million up front, plus a 15 percent percent of the gross after the film recouped. Regardless of why, we’re told that Marvel quietly began the process of finding a director to replace Favreau last night. But Marvel’s task is complicated by the fact that Downey Jr. has both contractually negotiated director approval and is currently the hottest leading man in Hollywood with first pick of dozens of "go" movies around town."