Square is preparing a sequel for their PSP fighting game Dissidia: Final Fantasy. It's set to be released in Japan in 2011.

The latest issue of Japanese gaming mag Shonen Jump (via Kotaku) revealed the sequel. It's got a tongue-twisting title: Dissidia Duodecim: Final Fantasy. The article states that Lightning from Final Fantasy XIII and Kain Highwind from FFIV will both be playable characters.

Tokyo Game Show begins next week. I'd imagine we'll hear more about the game then. Confirmation of a Western release would be cool.