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The screenplays are expected to be finished within 'six weeks', but the director doesn't see a role for rumored cast member Arnold Schwarzenegger in the all three.
The director also says that he is 'looking at high frame rate' to decide how he will approach the shooting of the films.
The two actors have finalized deals to return as Jake Sully and Princess Neytiri in 'Avatar 2' and two more sequels that follow.
The 'Avatar' producers will get a 25 percent financial rebate and, in return, will provide job opportunities to thousands of New Zealand locals and help promote the country as a tourist destination.
James Cameron teases that Colonel Quaritch will 'evolve into really unexpected places' as he's brought back from the dead for the next three films.
The actor who plays Jake Sully in the franchise also cryptically says that director James Cameron 'is building the ship to Pandora.'
The 'Terminator' actor was previously reported being cast as one of 'those nasty humans' in the next entry of James Cameron's 'Avatar' story.
The first follow-up is slated for a December 2016 release, with the next two opening in 2017 and 2018.
Josh Friedman will provide James Cameron with the screenplay of the sequel, which is eyeing a 2015 release.
Producer Jon Landau says filmmakers behind the upcoming sequels are currently exploring technologies to allow James Cameron to 'create performance capture underwater.'
Following his recent partnership with Chinese company CPG China, the 'Titanic' helmer plans to recruit actors from the Asian country to play the Pandora natives in 'Avatar 2' and 'Avatar 3'.
'Basically it goes back to the early expeditions of Pandora, and kind of what went wrong with the humans and the Na'vi,' so Cameron says of his design for the fourth 'Avatar' film.