Funcom (creators of games such as Age of Conan) announced Dreamfall Chapters, which represents the sequel to The Longest Journey, the 1999 P&C adventure (and Dreamfall: The Longest Journey). Red Thread Games is working on this one. It was formed by a Ragnar Tørnquist, who created The Longest Journey.

Here's a bit more info:

Red Thread Games has licensed the rights to 'The Longest Journey' universe from Funcom, and Mr. Tørnquist will spearhead development of 'Dreamfall Chapters', while continuing in an advisory role as Creative Director on Funcom's recently launched modern-day massively multiplayer online game 'The Secret World'.

Last month Joel Bylos stepped into the position as Game Director on the myths, legends and conspiracy themed online game, allowing Mr. Tørnquist to devote more of his time to 'Dreamfall Chapters', which recently entered pre-production.

Red Thread Games will independently fund and produce the sequel to 'Dreamfall', and has entered into a revenue sharing agreement with Funcom as part of the licensing deal. Funcom owns the intellectual property rights for 'The Longest Journey', but due to the company's focus on and commitment to the development of online games, the decision was made to license the rights to Mr. Tørnquist and his new development studio. The close working relationship between Funcom and Mr. Tørnquist will allow him to continue on as Creative Director of Funcom's 'The Secret World', in parallel with putting together a team to develop 'Dreamfall Chapters'.

"I'm very excited to finally have the opportunity to continue the 'The Longest Journey' saga," says Ragnar Tørnquist. "Ever since we ended 'Dreamfall' on a nail-biting cliffhanger, players have been rightfully demanding a sequel, and my deal with Funcom will finally make that possible. I'm extremely grateful to Funcom for this unique and exciting opportunity, and I can't wait to dive back into the universe I helped create more than a decade ago, and continue the story players have been waiting for these past six years."

Red Thread Games will release more details about 'Dreamfall Chapters' in the coming months.