The report comes from Ultimate Disney:
[T]he direct-to-video sequel Brother Bear 2 is slated to make its splash on DVD summer 2006. The feature’s storyline will center on Kenai (who, you may recall, has been transformed into a brown bear) as he travels the picturesque Pacific Northwest at the end of the Ice Age. During his adventures, he remains haunted by dreams of his previous life. As a human child, he befriended Nita, the daughter of a tribal elder. The pair’s past friendship collides with the present as Kenai and Nita embark on a journey as bear and woman. Rutt and Tuke are also back for this adventure.
Now, that sounds like a pretty good plot, doesn’t it? 
Thanks goes to Epesi for bringing this to my attention.