Original director Oren Peli formally announced on Friday (March 26) that Kip Williams will direct the sequel, which is still aiming for a Halloween 2010 release, for Paramount.
"We are thrilled to have Kip working with us," Peli wrote on the film's website. "He is the guy we want at the helm, because he knows exactly what we want to deliver to the fans... and I can't wait to be a part of what he's putting together. I don't want to spoil the story but I promise it'll surprise you."
Kip Williams is presumably Todd Williams, whose credits include "The Adventures of Sebastian Cole" and the well-received "The Door in the Floor."
Trade reports initially had "Saw 6" director Kevin Greutert helming the sequel, but he fell out amidst wrangling with Lionsgate. There were then a number of slightly odd rumors on potential directors, including Brian DePalma.
Made on a rumored production budget of $15,000, "Paranormal Activity" made $107 million domestic last fall and also performed well worldwide, making it one of the more profitable movies on record.