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Hironobu Sakaguchi has repeated what he's said previously regarding a sequel to The Last Story. Basically, he has no plans for a followup.
If there were to be a sequel though, Sakaguchi believes "that any direction could be possible." As you'll read below, Sakaguchi would even be willing to make it "a completely online game".
"I have no plans for making a sequel at the moment, so I haven’t really thought about any ideas for such a game. If I were to make a sequel, though, I think that any direction could be possible. I feel that it might also be fun for it to be a completely online game!"