According to a loose translation from Ubisoft France's website the following has been revealed:
"Game Designer Senior Production/Development; The Studio of Production of Paris seeks Game Designer for the continuation of the Red Steel project. You will assist the Person in charge Game design for the project: - in the management of ergonomics - in the design of the menus - in the redaction of the documents game system. You will have in load the design and the follow-up at least a key feature of the project."
Sorry about the rather cack translation, it's probably bad translation tools like this that caused me to get a C in my French GCSE all those years ago. However, from what we can tell from the translation it seems certain that there may well be some kind of sequel to the Red Steel project.
Interestingly in related news Ubisoft recently trademarked the name "Fighting Steel". Hmmm, we'll keep you posted.