According to Eurogamer a new Fable Game is in development:

Sources: Microsoft plots Fable return

Less than two years after shutting down Lionhead.

Work is underway on a brand new, big-budget Fable game, Eurogamer can reveal.

Fable franchise owner Microsoft has tasked UK developer Playground, which makes the Forza Horizon racing games for Xbox and PC, with creating this new Fable, sources close to the project have told Eurogamer. Microsoft said in a statement it does not comment on rumour or speculation.

We've heard the new Fable is planned as a story and character-focussed open-world action RPG. A significant investment in its development is also planned, with some 200 people set to work on the game at Playground's newly-established second office in Leamington Spa, Warwickshire.

The fantasy world of Albion is set to live once again.

Don't expect to play this new Fable any time soon, however. We've heard it's early days in terms of development, with Playground currently staffing up the team from double digits to its triple digit target.

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Thanks Farflame!