Batman Begins producer Charles Roven was asked by the Chicago Sun-Times whether or not the sequel will be filmed in Chicago, and he also talked about the villain:
As for other Bat-rumors, Roven denies he’s searching for a new, younger Joker to play Batman’s nemesis in the sequel. “The Internet has the Joker cast already,” Roven says shaking his head. “The ‘Net has also cast the Riddler. It’s just all rumors. … The truth is we haven’t even decided who will be the next villain.”
He says the nod to the Joker in the current movie “was our way of tipping our hats to the very first Batman movie [in which Jack Nicholson was the Joker].”
As for the status of this sequel, Roven says, “It’s up to [director] Chris Nolan and his schedule. He wants to make another movie first.”
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Source: Chicago Sun-Times