Kiss Kiss Bang Bang scribe Shane Black, according to Deadline, is in final negotiations to direct the third Iron Man film. Black is known best for writing the Lethal Weapon 1 and 2 films as well as The Last Boy Scout. This seems like an excellent choice as Iron Man 2 was missing most of that spunky fun that the original Iron Man had in spades. And Black knows how to write a witty actioner.
Black has a good relationship with Downey as he re-launched his career in 2005 with the cult-hit Kiss Kiss Bang Bang and seeing how Favreau left Marvel in the dust this project could certainly use all the good will it can muster.