Sam Raimi was closely involved with it, but many of us still wish for a sequel to Army of Darkness. Both Raimi and Bruce Campbell have said a sequel would be good but would probably never happen.
That may have changed as, during a press conference for Oz The Great And Powerful, Raimi said the following.
I would love to make Evil Dead 4. My brother and I plan to work on the script this summer.
That is very exciting. Of course it does not mean the film will ever get made, but it is a step in the right direction.
UPDATE: Sam Raimi has spoken about what he said and it is not as cut and dry as he said.
I’m afraid that every time I talk about it people get really mad at me when I don’t follow through with it. I would like to work on the script over the summer, that much is true. But the reason to come back and do it again is only that they’re making me, those fans.
I was saying to Ivan “Why do they stay on this thing? Why do they keep at it?” and he said “They want to make a movie. You’re a filmmaker and your fans are asking you to make the movie. What are you, an idiot? Make the movie!” I guess there’s something I don’t see. It makes sense when Ivan says it… but I didn’t have a tremendous amount of passion until right now to bring to it.
I love working with Bruce Campbell and Rob Tapert, I have so much fun making those movies, so… but the fans are really forcing me into it.
Source: Bleeding Cool