Thought this would be worth a mention. I found out first at, of all places, Gamespot, but it's also mentioned at Narutofan.com. According to Gamespot, the sequel to the first PS2 Naruto fighting game (which I haven't played) will add old man Jiraiya and the ShikaInoCho trio to the playable character mix.

Naruto Hero 2 on the way

TOKYO--Game developer CyberConnect2 is working on a sequel to its Naruto fighting game. That news was released on the developer's Web site as well as in the popular Japanese weekly, Jump.

Currently titled Narutimate Hero 2, the sequel will be released on the PlayStation 2. Details on the title are scarce at the moment, but it's known that an upgraded game system and cel-shading techniques (as was featured in the original Narutimate Hero) will be employed. Also, Narutimate Hero 2 will feature a number of new characters, including ninja master Jiraiya and three young ninjas: Shikamaru, Chouji, and Ino.

Naruto: Narutimate Hero 2 is scheduled for release in the fall of 2004. No retail price has been announced.
The official page also shows some screenshots, including a cutscene with Naruto using his shadow clone version of the Rasengan, Gaara putting some hurt on someone (Desert Coffin?) and Jiraiya apparently using his Underworld Spines defense.