The 'Kick-Ass' filmmaker will return to the franchise following his well received prequel which told the back story of Professor X (James McAvoy) and Magneto (Michael Fassbender) before they became enemies.
According to Deadline: "Fox has just closed a deal with Matthew Vaughn to come back and direct the sequel to 'X-Men: First Class', with Simon Kinberg writing The Script and Bryan Singer back as producer."
He is also expected to get 'Kick-Ass' screenwriter Jane Goldman on board to help with the script.
Although Matthew has only just been confirmed for the project, he has previously spoken about his ideas for the sequel saying he would only bring in one new character.
He explained: "We will only have one more new character. I won't say who he or she is! But we will only be bringing one more new character in. Because, I think, as Professor X is in a wheelchair, Magneto needs to have a nemesis he can fight with.
"Someone that will be his equal. I know who it is. It would be nice if I could say something, but I can't!"