"The Conjuring 2" is still showing in theaters but director James Wan is already thinking about making "The Conjuring 3" as the sequel to the paranormal real-life experiences of Ed and Lorraine Warren.

New Line Cinema, the production behind the horror blockbuster hit, is already thinking about expanding the horror franchise with "The Conjuring 3". When it comes to the content, director James Wan already knows that the setting of the sequel should be in the future. "I do have something specific but I'm not going to say it. But... I think Conjuring 3 has got to be set in the 80s," says Wan. Behind the curtains, Wan is already coordinating with producer Peter Safran for the spin off of the nun in the second movie.

Wan already has the material he needs for "The Conjuring 3." Science Fiction has it that they will be using one of the Warren's recorded paranormal cases. "They have a lot of cases. I'm not sitting there sifting through every single one, but I think, you know, between the writers and the studio, I think they have a short list of their favorite, like basically the top 20 or 30 of the Warren's favorite cases."

But Cinema Blend his it that it could be based on a werewolf story. Ed Warren previously published a book called "Werewolf: A True Story of Demonic Possession." It is possible that "The Conjuring 3" can be based on that mythical creature. But Wan will not confirm or deny anything just yet. He teased that it could just be like the classic "American Werewolf" except set in London."That would be awesome! The Warrens set against the backdrop of The Hound of Baskerville. That would be awesome," Wan said humorously.