Well yeah it was officially green lit in October but I doubt he'd have even started if they hadn't promised him something along the lines. The ending is terrible at this point. How would that look on Master Villeneuve's vita?
I also doubt they'll go for 3 because all following books don't have that kind of action flick / visual extravaganza potential and this is what Villeneuve can do. Instead there is a lot of talk and this is what Villeneuve can't do. It'll still be the same ol' Dune with a lot of chamber play. I doubt he's even seriously interested in that.