It seems everything we know about Red Steel 2 we know from job postings, including its very existence. The latest rumblings stem from a job opening on Gamasutra from developer Ubisoft seeking an online programmer specifically for Nintendo Wii.
The position is for a studio in Paris, "where Red Steel and Ghost Recon Advanced Warfighter games have been developed." The listing also notes that "knowledge of Unreal" (presumably the engine) is a plus.
Nothing has been confirmed; Ubisoft has committed to making a plethora of Wii games, meaning than any possible unveiling might be a ways off.
The first Red Steel, a Wii launch title, received much press in the months before its release but ultimately did not meet the hype, as indicated by tepid reviews.
[Via NeoGAF and Wii Fanboy]