Xbox Live developer NinjaBee has confirmed A World of Keflings will release this year.
It promises local multiplayer for the first time, plus a load of features asked for by the community following the release of the original A Kingdom for Keflings.
"A World of Keflings is much more than a sequel. It's a new game with a ton of new features, including some innovative ideas that stand out from both Live Arcade and full retail games," NinjaBee president Steve Taylor told IGN.
"A World of Keflings also has a new story focus, with new exotic lands, characters, quests, buildings, customization options, and a lot more."
A Kingdom for Keflings, released on Xbox Live Arcade in 2008, was a gentle and charming city-building strategy game. One of its key lures was the ability to use your Xbox Live Avatar in the game