According to Bloody-Disgusting, Robert Englund has an idea (Personally, I think it's an ok idea and one of the better ones) to bring back Freddy in a sequel.

He basically wants it to center around the children of dead victims.

'This is impossible with the original Elm Street kids, themselves, as they were all dead by part 4. All were still teen characters by the time they died and none had kids yet.'

However...

Robert Englund's quotes:

“If I was in control of my own Nightmare on Elm Street movie I have an idea I would have liked to see,” said Englund. “I thought it would be great if the children of previous victims, or just kids who grew up hearing stories about Freddy Krueger, were each haunted by their own version of Freddy Krueger. Kids who grew up hearing stories about this Freddy Krueger guy and the awful things he did envisioned him in their own way, and that is the version that begins to haunt them.”

“Some people may picture him as stout, another might envision him as tall and thin, another with a different hat, or a different sweater,” he continued. “He could have different gloves, or even a glove with small razor blades as referred to in the first movie. It would be neat to see very different interpretations of Freddy Krueger based on the child’s vision of who or what Freddy was to them. After all, each person’s subconscious would picture him in a totally different way.”