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The German version of Eurogamer has published a pretty interesting newspost, based on a report from Polish news agency Polska Agencja Prasowa. In short: Polish studio City Interactive Games has terminated its contract with German developers Deck13 and will now develop the Lords of the Fallen sequel, which they apparently plan to release in 2017, internally and with the help of external partners. CI Games cites "poor execution" of the contract as the reason for terminating the collaboration.
It will be interesting to see how this turns out, as the original title was developed on Deck13's internal engine and their contribution was apparently critical to the game's development (see this Gamasutra post-mortem). The original Lords of the Fallen wasn't a critical or commercial hit, but still managed to sell 900,000 copies.