An Alan Wake sequel would be exclusive to a Microsoft platform.
Remedy Entertainment franchise development head Oskari Häkkinen said that although the team hasn't been signed on for an update, it would only be released on Xbox 360 or PC.
"Microsoft put a lot of beef behind the title for it to be an exclusive for the 360," he told Eurogamer.
"They feel it's an important title for their portfolio. It fits into their portfolio among other games like Gears of War, Halo and Forza.
"They think of their first-party games as a package and a portfolio for the 360. My understanding is we have a great fit in that portfolio as well."
Häkkinen said that the team is hard at work on DLC for the original: "We're working full steam ahead here. We're a team of around about 50 people. We've still got plenty to do.
"Being in this launch phase at the moment, we haven't had a chance to get out to Redmond, Microsoft Game Studios, and discuss anything further of how we move on. But I don't see any reason why we wouldn't continue with Microsoft with a full-blown sequel for Alan Wake."
He added: "We definitely want to do it. We have great ideas for it. There's certainly a want, and that want is I believe from both sides. Right now I can't confirm anything."
Alan Wake was released earlier this year for Xbox 360.
'Alan Wake 2' would be Microsoft exclusive
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