Alien: Covenant star Katherine Waterston hasn't heard anything about a potential sequel in a long time. Covenant was the second film in Ridley Scott's Alien prequel saga, which has proven divisive amongst fans, mainly due to the new movies sidelining the original Xenomorph. Prometheus and Covenant focused on themes like creation and godhood, and while they both featured monsters and icky body horror, they're mainly about the journey of homicidal android David (Michael Fassbender).
Scott has made it clear in various interviews he's seeking to replace the Xenomorph with A.I. monsters instead, since he feels the various sequels have robbed the creature of its ability to scare viewers. Covenant was set to kick off at least two more movies, with the next entry being labelled Alien: Awakening, but it seems plans have changed. Covenant was a critical and commercial letdown, and for the time being it appears the franchise is on hold.
Covenant ended with David taking control of The Covenant colony ship, and Daniels (Katherine Waterston) going into hypersleep before she can stop him. The bleak ending heavily implies David will continue his experiments with the Engineer Xenovirus on the sleeping colonists, but in a new interview with Metro, Waterston says she hasn't heard about the status of the next movie in a long time:
I have no idea. I always feel as though the actors are the last to know. But I also feel as though I could have a great deal to do in that film, or just be rolled out in a body bag. I had heard some rumors about where it might go a long time ago that were really interesting to me and my character. But I haven’t heard anything in ages.
Scott has stated his plan for the next Alien movie is to explore the type of world A.I. would create free of humanity, and that the Engineers would return to seek revenge on David. Given their characters' status at the end of Covenant, Waterston and her Covenant costar Danny McBride could either play major roles in the next Alien film or be killed offscreen like Noomi Rapace was in Covenant – which is likely what Waterston's "body bag" comment referred to.
While Alien: Covenant and Prometheus have split the fanbase, it would be a pity if Scott doesn't at least resolve the story of David. Covenant ended on an almighty cliffhanger that teased a major storyline, and while the prequels have been undoubtedly messy, they've also taken the series in ambitious new directions. Given the lukewarm response to Covenant, however, it seems more likely the studio will choose to reboot the Alien films instead of wrapping up the prequel storyline. Scott also has a lot of potential projects on his plate, so if a third prequel movie is going to happen, it could take awhile to come together.