So it looks like Ubisoft is extending one of the longest running and beloved franchises in gaming, Prince of Persia. The question here is will they follow the updated Prince of Persia or go back to more classical gameplay as in the Sands of Time trilogy? That being said, evidence that a new game is in development comes on two fronts:

First, Marc-Antoine Senecal, a character modeller at Ubisoft has updated his CV to include the following: "working on the new Prince of Persia" from "August 2009 - Present (3 months)." and if that wasn't enough, the series creator has chimed in.

Jordan Mechner has filed a trademark on the the name Prince of Persia: The Forgotten Sands, which you can see in all its glory here. 

Personally, having played through the trilogy as well as the revamped version, I can't wait. I found the "new" Prince of Persia to be more colorful and more fun to play. The fact that you couldn't die took some of hte challenge out of it, but I think overall was the right strategy and you wanted to go back a replay just to find the stuff you missed the first time around.

Source: EuroGamer