In an interview last week, Terrence Howard hinted at the plot of an Iron Man sequel.

While director Jon Favreau wouldn't reveal that much, he admits that future Iron Man movies are on his brain.

"I thought about it," Favreau told IGN. "I have one, two, and three in my head, because if you don't then it seems like you're just re-treading the same ground. No, the way the Mandarin fits in, the way War Machine fits in, whether or not Obadiah [Stane] pops up again… There's a lot. The relationship of Pepper.

So we're really thinking and I'm watching the horizon as I do these movies so that it all makes sense as you watch them altogether. I mean, look at how well Lord of the Rings works. It builds to a climax, compared to movies where it just feels like you're redoing the same thing over and over again to diminishing returns."

While Favreau may be dreaming of future Iron Man movies, he's quick to point out that he isn't even on board for a second movie yet.

"There is no second one yet," he said. "Part of what they do when they do an actor's deal is they sign you on for many because it can get very expensive. For director they don't see the need because they can make the movie with or without you. I would love to do a sequel to it and I think that depending on the success of the film..."