Updated @ 12:02 p.m. PST: Electronic Arts has responded to the Reuters report...but didn't say much.
Electronic Arts is remaining silent, but it's becoming more and more obvious a sequel to Dead Space is coming sometime next year. Dead Space 2's existence has been mentioned several times on developer Linkedin profiles and a news report today filed by Reuters about Halloween and video games casually mentions Dead Space 2 is in development for a 2010 release.
"Electronic Arts has a pair of horror offerings for gamers. The publisher recently shipped 'Dead Space: Extraction' for Wii, which is a prequel to last fall's Xbox 360, PlayStation 3 and PC hit. 'Dead Space 2' is in development for next year."
I contacted EA for details, but don't expect much more than a "no comment," if they even decide to acknowledge this. I'll update this story if the company comes back with anything.