According to THE INTERNET, a Sony marketing manager in Benelux has spilled the beans about LittleBigPlanet 2. Folkert Langeveld of Sony Computer Entertainment Benelux mentioned LittleBigPlanet 2 in an online video, where he also revealed that Media Molecule's sequel would use the PlayStation Move. Because apparently, every Sony game needs to use Move now.
Of course, Sony has not officially announced this, so take it with a grain of salt. However, I have no doubt Sony is making this happen. The LittleBigPlanet IP was never as huge as Sony and everybody else expected it to be, and restructuring it around Move just makes sense from a "let's try to sell this again" standpoint. If LBP2 with waggle isn't announced before Move launches, I'll be very surprised.
Naturally, it goes totally against what Media Molecule said when it claimed they would never want to make a sequel, but a developer telling a fib is nothing new in this industry.