We have not heard from Rockstar about what they had planned for the game Red Dead Redemption but the fans had always believed that a sequel to the game will be happening.
Rockstar has not confirmed it yet but new rumors suggest that the game is being developed right now and that we are just a month away from hearing the announcement. The rumor came from Fraghero who revealed that Rockstar is working on the sequel and that the new game will be called Red Dead Redemption 2: Legend of the West.
He also added that the new sequel will be a lot bigger than the last game and that fans will be able to play as a few characters this time around. He also revealed that Rockstar will be announcing the game at E3 this year.
Of course, since we do not know if the leak is the real deal or not, it is best if we just take it with a pinch of salt for now.