Not only was Kung Fu Panda a critical success it was also a hit with audiences – so far the animated flick has made over $150 million at the domestic box office. That’s why it should come as no surprise that DreamWorks is moving ahead with a sequel, and apparently work is already underway.

Over at The Animation Guild blog, Steve Hutely, business representative for the guild, recently visited DreamWorks and posted the following update:

Every building of the DW campus is bursting with activity. Monsters and Aliens, Shrek, Madagascar Deux, and on and on. DreamWorks’ Lakeside Building is getting enlarged, and the administrative staff is gone from the upper floors.

But down on the lower levels, artists are working. A story crew has started early work in Kung Fu Panda, the Sequel, even while animators are hand-drawing new material for the DVD of Kung Fu Panda, the original.

So what do you say, 2010 for Kung Fu Panda 2?