20th Century Fox is eyeing a Christmas 2015 release for the film.
Cameron has been holed up in New Zealand working on the script that will follow up his 2009 mega-blockbuster.
The move is an ironic twist given that Friedman was an executive producer on the TV series Terminator: The Sarah Connor Chronicles, which Cameron had nothing to do with despite creating the characters with Gale Anne Hurd. Furthermore, Friedman ended his relationship with the studio in March, when he left 20th Television and signed a two-year deal with Universal Television.
But the Avatar 2 gig provides a real feather in his cap given the success of the first film, the highest-grossing movie of all time.
Friedman, whose credits also include The Black Dahlia, is repped by UTA and attorney Karl Austen.