NeonPunch claims that the Chinese star is in "final negotiations" to portray one of Tony Stark's key allies in the sequel.
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Sir Ben Kingsley and Guy Pearce are expected to serve as Iron Man 3's villains, portraying Mallen and Aldrich Killian, respectively. Scarlett Johansson announced earlier today that she will not reprise her role of Black Widow for the film.
Director Shane Black opened up about the film at CinemaCon this week, describing it as a "technological thriller" and a "crisis movie" set in a world of "international war, arms and terror".
Robert Downey Jr will reprise his role as the titular hero in Iron Man 3. Gwyneth Paltrow and Don Cheadle are also expected to return to the series.
Iron Man 3 opens in cinemas on May 3, 2013.
Watch Robert Downey Jr's Iron Man in action in The Avengers below:
