According to planetxbox360, sources who attended last week's Captivate showcase - Capcom's annual press event - have revealed that a follow-up to Bionic Commando Rearmed is on the way.
A teaser trailer for the game is reported to have been shown at the event.
The rumour ties in nicely with news that the team from the now closed Grin studio - creator of the first game - is back with a new studio: Might and Delight.
"We are proud to announce that we will continue to explore the wonderful collaboration that led to Bionic Commando Rearmed. Our brand new studio Might and Delight, located in Stockholm Sweden, opens its doors for business today!" read a statement from the studio.
The studio says it will focus on what it loves most, retro games.
"It's no secret that Might and Delight loves retro. We adore the delicate simplicity found in many old games. Our goal is to create experiences that looks to that simplicity while providing something fresh and accessible!" said the studio.
A updated post on the studio's website has, however, cast doubt on the rumour.
"Some sites are reporting that we're already working on a new game, which unfortunately isn't true quite yet. Our main goal is to continue creating remakes of classic games, so we can't really start working on a title until we have the publisher/IP-owner on board."