Just Cause developer Avalanche Studios has reportedly teamed up with Square Enix to develop a new action game.
In email correspondence with Eurogamer, Avalanche reportedly confirmed it is working with Just Cause publisher Square Enix on a project it described as "ground breaking."
The developer also reportedly revealed that it has multiple current- and next-generation console projects due out in the next two years.
In February, Avalanche teased three new projects, to be completed by 2014, the first of which the developer said would be announced before July. The surge in activity has been attributed to the opening of a new development house in 2011.
It remains to be confirmed whether the new Square Enix project will be for the current generation of consoles.
Avalanche is best known for its well-regarded open-world action franchise Just Cause; its most recent instalment was launched in March 2010. In September, the company released Renegade Ops, a vehicular dual-stick shooter, which received a favourable critical reception.
More information on Avalanche's goings-on can be found through its newly launched website.