Deadline says:
Warner Bros and Legendary Pictures is near a deal with Barney's Version star Rosamund Pike to play the role of Andromeda in the Clash of the Titans sequel. Pike has been on the radar since the 2002 James Bond film Die Another Day and has done a succession of indie films. Pike had been mentioned in speculative stories about who might get the lead in Zack Snyder-directed Superman films opposite Henry Cavill. Scratch her off the list, she'll be busy in this Warner Bros film instead, which stars Sam Worthington and will be directed by Battle: Los Angeles helmer Jonathan Liebesman. Andromeda (played by Alexa Davalos in the original, who was unavailable for the sequel) is a major role and had the likes of Gwyneth Paltrow mentioned as possibles. She's repped by UTA, Magnolia and United Agents.
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Yay? I'm still not happy about a sequel to this film, but this casting news is kind of cool. We'll just see how well the film does over all.