A sequel to the 2019 psychological thriller Rakshasudu is in the works, with Satyanarayana Koneru bankrolling it under A Studios LLP and Havish Production.

Director Ramesh Varma, who helmed the original, is also set to return for Rakshasudu 2 -- Hold Your Breath. Besides directing the film, Ramesh is also providing the story and screenplay for the sequel. The first look poster of the film was released by the makers on Tuesday.

"Rakshasudu 2 is packed with more chills and scares than the original. It's being made in a different set up and the story would thrill the audience to bits," said the makers in a statement.

The film will go on floors soon and a top hero is expected to headline this project. Playback singer Sagar and Srikanth Vissa are penning the dialogues for Rakshasudu 2, which has music by Ghibran.

Apart from Rakshasudu 2, Ramesh Varma is also directing Ravi Teja in Khiladi. A remake of Sathuranga Vettai 2, the film is gearing up for release soon.