Recently French website Le Portail du Jeu Video reported that a new Prince Of Persia is under development and to much surprise, it appears to be a 2D classic version of Prince Of Persia.
The rumored title is supposedly using a version of the UbiArt engine that Rayman: Legends and the upcoming Child Of Light also use. The engine allows each individual body part of the character to be animated. This is all just rumor at this point but hopefully we will hear more closer to E3.