Watch Dogs 2 is in development and will release "later this year", according to a new report.

Kotaku claims to have heard details about the unannounced sequel alongside alleged plans to skip a new Assassin's Creed this year, with Watch Dogs 2 possibly set to take its place this autumn.

The sequel will allegedly be set in San Francisco, an alternate location to the original game's Chicago setting.

While Watch Dogs 2 hasn't been formally announced by Ubisoft, the publisher has previously dropped multiple hints at its existence. 18 months ago, Ubisoft CEO Yves Guillemot said that he didn't know whether protagonist Aiden Pearce would return for a sequel. Then, last January, creative director Jonathan Morin suggested that the development studio intended to take "risks" to ensure that a sequel would "appeal to fans in a new way".

Watch Dogs 2 later appeared on the online CV of the game's senior gameplay programmer.

The question remains, though, as to when we may see it. Could Watch Dogs 2 appear before E3, or does Ubisoft have plans for a reveal at this year's show?

Ubisoft's next big game, Far Cry Primal, releases next month, with The Division following on March 8.