Superannutation dug up from character modeler Marc-Antoine Senecal's Linked In profile that he has been working on "the new Prince of Persia" since August. Since Marc-Antoine has changed it to say "on the best game ever".
It still surprises me that people who work with technology on a day-to-day basis fail to realise that putting stuff on facebook, linked in, or twitter, means the world knows about it. But hey, at least we know Ubisoft are working on a new Prince of Persia. It's probably going to be a while until it's out though...