A brand new, big-budget Fable title is in development at Forza Horizon studio Playground Games, Eurogamer sources claim.
That claim lines up with information pulled from the Xbox Live API SDK earlier this month, which showed that new games in the Fable, Perfect Dark, and MechAssault franchises might be on the way to Xbox One and Windows 10.
According to Eurogamer, more than 200 people will work on the new Fable, which is described as a story and character-focussed open-world action RPG.
The news comes just two years after Microsoft closed Fable creator Lionhead Studios and cancelled free-to-play action RPG spin-off Fable Legends.
According to former Lionhead developers, the studio had wanted to make Fable 4, but it seems Microsoft wanted something more in line with the ever-growing "online games as service" model.
Apparently Microsoft's mind was changed by the success of Guerrilla Games PlayStation 4 exclusive Horizon Zero Dawn, which has sold more than 3.4m copies.
Fable co-creator Simon Carter told Eurogamer he has slightly mixed feelings about the franchise returning.
"On the one hand it's great for the UK games industry, and very pleasing that Fable isn't dead; indeed, it will be lovely to play one as a punter, without coming out in hives," Carter said.
"On the other hand it is a little curious to get rid of the team that is uniquely expert in making Fable, and then try and make Fable.
"Fable is a weird game, and a tough one to deconstruct for a new team. That said, the team in question is very talented, and I'm sure they'll do a fantastic job."