Kane played a very small role in the first film, 2006's Behind The Mask, being interviewed in front of the original A Nightmare On Elm Street house. It was a nice little homage for Horror fans, but as mentioned before, expect a larger role this time around.
From Dread Central
Kane Hodder Quoted As The Following
"I was happy to be a part of the first film. Had no idea what, exactly, I was getting myself into. But Robert (Englund) asked me to do a favor and show up in front of the Elm Street house for a cameo, so I did it. In retrospect, I'm so happy to have been a part of such an intelligent, clever Valentine to horror fans. I've been shouting the praises of Scott's movie for several years now, and I'm excited to be offered a more substantial role in the next one. It's really important that we support indie horror, and I can't think of a bigger statement we'd all be making than getting this project fan-funded. That would definitely send a message to Hollywood."
Currently, the prequel is in a kickstarter fund raising mode, hoping to collect the essential money necessary to begin production. We will keep you updated when more news becomes available.
Source: Dread Central