The filmmaker joined Disney's D23 Expo from New Zealand and virtually joined it.
He confirmed that filming has begun on the fourth installment of his Avatar series.
The makers of Avatar released the teaser and first look for the sequel to the first film, Avatar: The Way of the Water, more than ten years after the original film was released.
Cameron then presented 3D scenes from Avatar 2 to the D23 attendees.
The director went on a long sabbatical after the first film was released. He continued to flesh out the stories until Avatar 5.
They now have three children.
Avatar 2 will explore unexplored areas of Pandora. It will also feature extensive underwater scenes.
A water tribe is expected to play a significant role in the film.
The sequel will continue to focus on the importance of family, despite its sci-fi themes and high-concept science-fiction base.