In several messages on the Revolution forums, Tony Warriner (lead programmer and technical designer at Revolution and Rev's active forum ambassador) has confirmed Beneath a Steel Sky 2 - after 18 years it's finally happening.
Tony spoke about potential plot:
"well, one idea is to continue 1 second after bass1... graphics: 2d, proper classic adventure gameplay. Personally, I'd want to look hard at linc-world and maybe do something a little more believable there." ( http://revolution.co.uk/_forum.php?neuron=1&topic=5405&message=64011&page=0 )
When asked about Lure of the Temptress 2 he simply said:
"don't hold your breath" ( http://revolution.co.uk/_forum.php?neuron=1&topic=5405&message=64014&page=0 )
There is also the possibility of seeing future Broken Sword projects on the DS after BASS2.

I don't think this is the first time they've talked about BASS 2, but let's hope it finally happens this time... I know I'd buy it.

That message doesn't necessarily say work on BASS2 is actually happening. The original poster was asking what he would do if BASS2 was made.

Tony said that BS5 would come after BASS2. BASS2 is their next project.

I will be interested to see how they manage this, and if it can correctly capture the mood of the original.

what exactly would it be about? the ending was fairly conclusive, perhaps it could be about Hobart?

There aren't many games you can ressurrect after that many years and have them have the same effect as thier predecessors. I don't have faith in games like that, but I hope it does turn out to be excellent. You never know until the release day.

They could always do a high quality remake, add a few forced stealth sections, some twitch gunplay, some parkour sections, quick time events, give him a busty female sidekick...
Oh sorry, I was thinking of EA there.
The remake idea might be a good one IF they did it properly. That or they could just set another story in the city that interacts with the original story in some ways, you might be the one that sabotages the guidance system that causes the chopper foster is in to crash or something.

As long as they don't do to it what they did to Broken Sword. I don't want to wait until a few sequels down the road for it to recover again.
Great to hear though that Rev has not forgotten BASS.

What was wrong with the later Broken Sword games? Sure 3 had too many box puzzles (IE: Some) and 4 had that hacking minigame that could be annoying but the rest of the games were gold I thought

Personal opinion here: I don't think they made the transition to 3D well enough. A number of adventure games went this path and for me it usually does not work.
Not saying it can't be done, just have not liked what they've done so far.

3 did feel a bit clumsy and you're right, most adventure games that transitioned to 3D went through an awkward stage but I thought they got it right with #4

They improve with each new one, I'm nearly happy with the latest, so I have some hope that a BASS2 would step past the line.

He's now said there will be a Linux build :D

BASS2 would be great indeed.
Be vigilant.