Arrow in the Head interviewed Wes Craven recently, he had this to say regarding the Nightmare series:

There have been some rumors that you might want to direct a third NIGHTMARE film, perhaps attempting to create a pure trilogy within the franchise. Any truth to that, if for instance NewLine came to you and said "Let’s do it," or is that pure fan fantasy?

That's something that I'd be interested in doing, but the curious thing to me about the question is that I've done multiple interviews today and that's the first I've heard of that notion. The idea of me turning it into a trilogy. There's been no discussion between me and the studio about that.

Have you thought at all about what you would do with a third NIGHTMARE film?

No, I haven't. Because to spend time thinking about a film that you have no reason to believe will be made is kind of a waste of time. I'm working on a script of my own, and to me it's always better to work on something that's attached to the future. Something that's brand new, and something that I can control more, ultimately keeping ownership.

Special thanks to S-10!