There's been no announcement made. So as far as we know, there is no sequel. He said when the first one came out that they would decide if they wanted to make a sequel based on box office and reviews. They had an average box office profit, and horrible reviews. It's not going to happen.

Fans in China loved it.
He also thinks that people just misunderstand and don't think the reviews are all that bad.
Seriously- he doesn't see what we're all so mad about.

Well I'm just saying, it's been two years and there's no announcement. I think it's safe to say whoever makes this decision has decided against making a sequel.

I don't.
But it's not that they rushed it (which they did), it's that they got everything wrong; the character personalities, the name pronounciations, the way elements work, the ages of characters (Haru was about 8 years old and wasn't even named), they left out characters that should have been there, they put characters in- and far too early (the temple guardians in Roku's temple that turned on Aang). They put in all the filler episodes and none of the actual plot episodes. And finally, it was only book one. Book one is not 13 hours.

And...they made Iroh look like a bad guy.

Well after all in defense of M. Night I'll say that he should have renamed his moive. He should have said "This moive is BASED on a tv show but it a totally different item that I as Director and Scriptwright made up. It is MY version, please do not compare it to any other thing, just take it as something unique that has nothing to do with anything else". Then it won't be so hated. Because I didn't watch the show, I had to watch that movie despite the fact that everyone was telling me it was complete crap... and I could watch it no problem. I mean I have no idea what's going on, just some randrom adventure/action/fantasy. I've seen better films, and I've seen worse. Nothing to bitch about.

i honestly think that m. night is retarded how can you get everything wrong didnt he watch even 1 episode ?

He watched 1.
Ember island Players