Unfortunately, it isn't likely to be a sequel to Follow That Bird.
An image from 1985's Follow that Bird, the first Sesame Street movie.
It's true, though. Deadline reports that writers David Guion and Michael Handelman (Night at the Museum 3, Dinner for Schmucks) have been tapped by Warner Bros. to write a new, live-action Sesame Street movie. Shawn Levy, the producer behind Arrival and Stranger Things, among many others, will be part of the effort to bring the franchise back to the big screen.
Though Sesame Street has been around for almost 50 years, it's seen a resurgence of late, thanks to a new batch of shows on HBO earlier this year. It was previously adapted for the movies in 1985's Follow that Bird and 1999's The Adventures of Elmo in Grouchland. Guion and Handelman's job will be to find a fresh take on the franchise that's informed the learning of so many.