Update: This article has some errors regarding the game's basic premise. We've marked out the erroneous parts. See this followup for a more accurate report.
The second game in Grasshopper Manufacture and Kadokawa Games' partnership (following Lollipop Chainsaw) has been revealed in this week's Famitsu to be "Killer is Dead."
Suda 51 is directing Killer is Dead, but it's not a sequel to Killer 7.
In this original title, you play as a prisoner who's been sentenced to die. Your goal is to kill your assassin.
The game promises to retain the essence of Killer 7 and No More Heroes. It also promises to be a sort of "Dark Side 007" in that it will feature a number of beautiful Bond Girl-like ladies.
On the gameplay side of things, early reports indicate that the game will have sword-play ala No More Heroes, but with new elements.
Killer is Dead will be released on PS3 and Xbox 360 in 2013.