According to E!Online Spoiler Chat and Ryan Hansen, it’s a possibility:

Kristal in Detroit: Any news on Party Down?
According to star Ryan Hansen, production on Party Down season two begins in September. Jane Lynch is definitely not returning. (Ryan: “Kill me now. I love Jane Lynch so much.”) As for the future of his character, Kyle, Ryan says, “I think that he will maybe get a couple little parts, get a big head about it, and then maybe fail a little bit and have to cater to support himself. And hopefully his band, Karma Rocket, can play one of the catering gigs.” And everybody involved is optimistic that Kristen Bell will be back as Uda Bengt. Ryan tells us about prospects for Bell’s return, “I’ll drug her and drag her in, and we’ll just prop her up.” Sounds good to us!

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