Banjo-Kazooie studio Rare is expected to emerge from the shadows at E3 next month and announce a new game.
According to IGN, the studio's creative director Simon Woodroffe broke the news on Twitter, although his posts are protected.
Gregg Mayles - a designer who worked on the Donkey Kong Country trilogy, Banjo-Tooie and Viva Pinata - is said to be involved in the project.
Rare has not released a game since last year's Kinect Sports Rivals and is in the process of shifting its focus after devoting its resources solely to Microsoft's motion accessory.
News of the possible E3 announcement has sparked rumours that the new project could be everything from a Battletoads reboot to a Banjo-Kazooie sequel, but Rare is yet to comment on what form it will take.
A new Banjo-Kazooie has been tipped as the frontrunner given that the game's spiritual successor Yooka-Laylee recently caused a storm on Kickstarter.
