The family movie, starring Jason Segel and Amy Adams alongside the late Jim Henson's puppet creations, proved to be a hit with film fans, raking in $154.8 million (£96.75 million) worldwide upon its release last year (11).
It even claimed the Best Song Academy Award for Man or Muppet and now Disney bosses are hoping to replicate that success with a second installment.
However, Segel, who co-wrote The Muppets with screenwriter Nicolas Stoller, will not be involved in the writing process this time around due to his other film and TV commitments.
Explaining his decision to CraveOnline.com, the actor says, "You know, my goal was to bring The Muppets back and I think that I achieved that. It was half a decade of my life and I just want to take a minute to concentrate on more human related projects."
The Muppets director James Bobin will help Stoller come up with a new adventure for Kermit the Frog and Miss Piggy.
It is not yet known if Segel will return to star in the sequel.