There's not much known with regards to the plot for Guardians of the Galaxy Vol. 3. However, the fans who have been wanting to see Yondu's return might have an answer as to what to expect in the upcoming film, and it's not looking good.
James Gunn recently held an Instagram Q&A with his fans. The director was asked about whether or not there is a possibility for Michael Rooker's Yondu to return in the sequel somehow. To which he wrote, "Not to life no." He points out that if a character has already died in his films, they will "likely stay dead. "I think stakes are important," he added (via Comicbook).
That being said, all hope is not lost yet. Gunn specifically said Yondu won't return back to life, but there could be a possibility that we'll see the character in a flashback within the upcoming film, which isn't unlikely to happen. In addition, the director has revealed that he has big plans for Sean Gunn's Kraglin, which is also one way to show a backstory with Yondu in it. Based on the second Guardians of the Galaxy movie, the Yaka arrow wielder is expected to follow Yondu's footsteps after his tragic death.
Although he is definitely not returning back to life, fans are still hoping to see Yondu in the sequel film and, possibly, learn more about him.
For now, Gunn is working on The Suicide Squad which will be released in August 2021. On the other hand, Guardians of the Galaxy Vol. 3 has not yet been given an official release date, but Gunn has revealed that they might start filming "in a year or so."
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