At South by Southwest, Rodriguez announced that he would be expanding his trailer for Machete into a feature-length movie.

According to Rodriguez, the origins of the film go back to Desperado. He says, "When I met Danny, I said, 'This guy should be like the Mexican Jean-Claude Van Damme or Charles Bronson, putting out a movie every year and his name should be Machete.' So I decided to do that way back when, never got around to it until finally now. So now, of course, I want to keep going and do a feature." In an interview with Rolling Stone magazine, Rodriguez said that he wrote the screenplay back in 1993 when he cast Trejo in Desperado. "So I wrote him this idea of a federale from Mexico who gets hired to do hatchet jobs in the U.S. I had heard sometimes FBI or DEA have a really tough job that they don't want to get their own agents killed on, they'll hire an agent from Mexico to come do the job for $25,000. I thought, "That's Machete. He would come and do a really dangerous job for a lot of money to him but for everyone else over here it's peanuts." But I never got around to making it."

Rodriguez hopes to film Machete at the same time as Sin City 2. Additionally, during Comic-Con International 2008, he took the time to speak about Machete, including such topics as: status, possible sequels after the release of Machete, and production priorities. It was also revealed that he has regularly pulled sequences from it for his other productions including Once Upon a Time in Mexico.