I've recently been seeing a ton of rumors going around involving a Willow sequel. I don't know if you've seen those or not, but they're not true. There is currently no Willow sequel in development...that we know of. Disney obtained the rights to Willow when they purchased Lucasfilm, so there is a possibility that a sequel or remake could happen as a film or even a TV series somewhere down the road.
"Warwick Davis is such a great guy, who played Willow. He remains a close friend, and I'm always rooting for it to become like a TV series or something because he's such a talented guy. He's been in so many wonderful fantasy movies since then, and comedies and other things. I know I'd like to watch a Willow television show. I think that'd be a blast."
If Disney ever did move forward with a sequel to Willow, they'd have to bring Warwick Davis back! It just wouldn't be Willow without him. He's Willow! That being said, I'd be totally up for seeing the story of Willow continue as a film sequel or TV series. I just have no idea if Disney is even considering it at this point.