The Paladin is a warrior, he makes use of holy spells and he usually uses the Blade as his main weapon. He is a lot more powerful than the warrior in Diablo and is in no way affiliated with him. It's most unlikely that any of the characters and townsfolk from Diablo will be returning in Diablo II, however there are some rumours concerning Cain and Wirt, but nothing is certain. No screenshots of the Paladin has been released, this is the same for the Necromancer.

"Paladin -- The Knights of Westmarch who felled the armies of mighty Leoric are pure at heart and follow closely the teachings of Zakarum, the Religion of the Light. A battle-ready warrior for whom faith is a shield, he fights for what he believes to be right. Furthermore, his steadfastness gives him powers to bring blessings to his friends, and wreak cruel justice upon his foes. There are those who call the Paladin an overwrought zealot, but others recognize in him the strength and goodness of the Light."

Level	Skill	Effect
1	Holy Aura	Creates a shield which protects you against and repels undead creatures.
2	Shield Bash	Allows you to use your shield as a weapon
3	True Blade	Gives attack bonuses to weapons.
4	Arm of God	Makes the Paladin move with impossible quickness and inflict grievous wounds upon his enemies - but the Paladin takes damage while using this skill.