Don Cheadle will replace Terrence Howard in Marvel Studios' "Iron Man" sequel says The Hollywood Reporter.

Howard played Colonel James 'Rhodey' Rhodes, Tony Stark's best friend in the first feature. Negotiations with Howard apparently fell through over financial differences amongst other reasons.

Marvel decided to take the role in another direction and approached Cheadle. Rhodes is expected to gestate into the armor-clad hero War Machine either in this film or the next.

Justin Theroux is penning the screenplay, Jon Favreau is returning as director and Robert Downey Jr. is set for Tony Stark. Gwyneth Paltrow is also expected to return.