According to the Hollywood Report actor Don Cheadle will replace Terrence Howard in Marvel Studios' Iron Man 2.

In the first film, Howard played Col. James 'Rhodey' Rhodes, Tony Stark’s best friend  made the comment “next time” when looking at the Iron Man suit of armor. This scene gave fans the hope of seeing Howard as War Machine in the movies sequel.

While Marvel had no comment, sources close to the deal said negotiations with Howard fell through over financial differences, among other reasons.

Marvel, which had wanted to work with Cheadle, then decided to take the role in another direction and approached the actor, who is shooting Antoine Fuqua's Brooklyn’s Finest.

Iron Man 2 will be in theaters May 7, 2010 and is being written by Justin Theroux. Returning for the sequel is director Jon Favreau, Robert Downey Jr., and Gwyneth Paltrow.