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Well, it looks as though not only were those rumours true, but the movie has already been completed.
According to a report in Collider, the movie has already been screened for some select industry types.
Unnamed sources told the entertainment news outlet that the sequel finds Borat (played by Cohen) under the impression that he has become a successful movie star, given his newfound fame in the wake of the first film.
The Kazakh journalist responds to this by attempting to disguise himself from the public, even going so far as to conduct interviews incognito.
One source, says Collider, suggested the film will be 'Cohen playing Borat playing Cohen'. Oof, meta.
Last month, 48-year-old Cohen was spotted filming in Los Angeles in full Borat garb.
A clip shared on social media appeared to show the actor and comedian wearing a grey-coloured suit and sporting his instantly recognisable moustache while in a yellow pick-up truck in Long Beach.
In front of the pick-up was a van containing a film crew.
Cohen was also seen in the full Borat gear in 2018 - in a post on Instagram, he shared a snap of himself (as Borat) posing with an ID card, that didn't appear to belong to him, and an 'I've voted' sticker. He captioned the photo: "I voted, Great Success."
And that's not all - he was reportedly spotted in character at a right-wing rally held in Washington in June, prompting fans to believe he might be making a second season of Who Is America.
The organiser of the rally Matt Marshall told NPR that a week before the event, a California-based group called Back to Work USA contacted them out of the blue and offered to pay for the everything.
But on the day, there was an addition to the musical line-up and a man, believed to Cohen, got on stage.
Marshall told NPR that he was suspicious the moment the singer stepped onto the stage, saying: "A guy that's like wearing almost a clown suit of red, white and blue gets up there.
"Obvious disguise. Like a fake nose and chin. And he starts playing and the first thought when you hear his voice is, 'Dude, is this like a bad impression of Borat?'"
According to reports, the 'singer' was eventually rushed out of the rally and disappeared without a trace.
LADbible reached out to Sacha Baron Cohen's representatives for comment.
The original Borat movie saw Cohen picking up the role of the titular fictional journalist, a character originally developed for TV series Da Ali G Show.
Much of the footage sees Borat interviewing real-life Americans, who believe he is a foreigner with a slim understanding of US culture and customs, with invariably hilarious results.
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