EXCLUSIVE: Twentieth Century Fox has begun negotiations with James Mangold to return for another installment of The Wolverine, with Hugh Jackman bringing back his signature character with the razor sharp adamantium hooks. This comes after The Wolverine played very strongly overseas, enough to now sit as the second highest grossing X-Men film of all time. The film has grossed $413 million worldwide, with $132 million domestic and $280 million in international revenue.

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Here’s where it is right now. Mangold is making a deal to write the treatment, with X-Men franchise matriarch Lauren Shuler Donner producing. The storyline is being kept under tight wraps. I think Mangold did a bang up job on his first superhero film. When I met him at Comic-Con San Diego, he said he tried to veer from the usual superhero formula–if hero doesn’t succeed, world is doomed–and instead make it a character-driven storyline. There were plenty of action pieces, samurai swordplay and reasons for Logan to work up that famous temper, but at its core the film worked because the stakes were subtler and the storytelling somehow more intimate. Mangold is repped by WME and Management 360, Jackman by WME.