In 2010, Reeves indicated that Matheson and Solomon were working on a script for a third film.
Winter has stated that the role of Rufus (previously played by the late George Carlin) would not be recast.

In April 2011, Reeves stated that a third film was close to happening. On April 24, 2011, Winter tweeted that the script for the third installment had been finished.
The plot is suspected to be about Bill and Ted writing a song that could save the world, although in a pre-San Diego Comic-Con International interview Alex Winter stated the storyline may also involve time travel to the prehistoric era, and the film would likely see a cameo by Eddie Van Halen as well as the return of Socrates and Billy the Kid, who appeared in the first movie.
The current script does not feature William Sadler reprising his role as the Grim Reaper, but the screenwriters are looking for a way to include him, and Sadler has expressed interest in returning to the role.

In August 2012, director Dean Parisot of Galaxy Quest and the upcoming Red 2 was attached to direct.

I was gonna wait until this was confirmed. It actually sounded like an Onion report.

I for the life of me can't figure out why anyone, including Reeves was even thinking about it, especially with a gap like it will have.