Previous rumours had stated that the film, which is set to film abroad this year, would cast an antagonist with "elevated ideas", leading to fans speculating that Kraven the Hunter - or perhaps even Norman Osborn - could face off against Tom Holland's Spider-Man in the sequel. Neither of those characters, however, look set to feature, with THR instead reporting that Gyllenhaal is in talks to play none other than the villainous Mysterio himself, Quentin Beck.
THR also report that Homecoming screenwriters Chris McKenna and Erik Sommers are returning for the sequel, which is still yet to receive an official title.
Though Mysterio was never really considered as one of the more well-spoken Spidey rogues, his ostensible inclusion in Homecoming 2 should give cause for excitement. Marvel have so far resisted temptation to revisit older rogues like Green Goblin and Doctor Octopus - both famously depicted in Sam Raimi's trilogy - and with Michael Keaton's Vulture being a key highlight of Jonn Watts' Homecoming, the approach has certainly paved off.
Introduced in 1964's Amazing Spider-Man #13 by Spider-Man co-creators Stan Lee and Steve Ditko, Quentin Beck started out life as a special effects technician before deciding his abilities could better benefit a life of crime. This brings him into conflict with everyone's friendly neighbourhood web-slinger and, as the years go by, he eventually carves a reputation as one of the character's most troublesome enemies.
Do you think Gyllenhaal is a good pick for Mysterio? Or should he be playing someone different? Be sure to let us know in the comments below!