After a significant amount of speculation, BioWare have announced that the next addition to the Dragon Age franchise will indeed be Dragon Age 2.
The game will be a full-fledged sequel, featuring a new character and it'll be set in a completely different part of the world. It will also take place over a 10-year time period that will see the player transform from a "a destitute refugee to the revered champion of the land".
EA had previously announecd that a new Dragon Age product would be released in March of 2011, and this is that product. It'll be coming out on the PS3, PC and Xbox 360.