From SFX Magazine... Fantastic news!
Sarah Jane Adventures producer Nikki has told Doctor Who magazine that K9 will be back in a big way in the third series of the spin-off show: "We've already got 10 scripts at first draft stage, and I can now announce that K9 is going to make a return to Sarah Jane's attic! He's been locked away in that safe, saving the world from a Black Hole, for far too long now. I can promise that the fun is only just beginning - just wait till he gets to meet Mr Smith properly." He is due to appear in around half of the 12 episodes.
Quite what all this means for the Australian K9 series currently in production is not clear, though clearly the rights situation does allow for K9 to be used in both production. Surely the BBC isn't worried enough to adopt spoiling tactics?