Will Ferrell has confirmed that he and his director/co-writing cohort, Adam McKay have agreed a deal with Paramount to make a sequel to his brilliant comedy, Anchorman; and he did so with typical hilarity, in character on Conan.

The biggest hurdle seemed to be bringing back the likes of Paul Rudd and Steve Carrell to supporting parts. When the first film came out in 2004 both actors were well respected, but hardly household names; cut to today and both men are headlining hit comedies. Judd Apatow is also coming back to produce the film under his own banner, and I would expect that everyone involved is doing the flick for a smaller fee than usual. No word on Christina Applegate, but it has been suggested that it could go all "Austin Powers" with a different lead actress every time. I'm dying to see this, as is most of the internet - expect Anchorman 2 to take in a lot more money than the first one.

You can have a look at Ferrell's flute on Conan below...