Well by the sounds of it at least,as according to recent news.
An article here explains it in more detail
By the sounds of it the new film exists in the same universe/timeline or it may reveal that it could be another reality and both will cross over.
Weather this is a good idea or not I am really happy to find out a follow up to Army of Darkness is finally in the works.And good or bad idea it is still a more original one rather than just making a straight up remake/reboot of it.
So what do you think?