Yes, Square Enix reveals that the publisher has contracted Obsidian to develop a new multi-platform Dungeon Siege. Cool news for me I hope old Dungeon Siege games will come to GOG.com.
http://ve3d.ign.com/articles/news/55195/Obsidian-Developing-Dungeon-Siege-III-For-Square-Enix
Edit: Official announcement and first screenshots.
http://ve3d.ign.com/articles/news/55203/Dungeon-Siege-III-Official-Announcement-Screenshots

As I am just about to reinstall DS1 to play Lazarus. Honestly, DS has never been good, at all.

You took the words right out of my mouth. Although to be honest, I'm not sure what even obsidian can do with the franchise.

Damn, didn't think Obsidian could sink any lower.
I was wrong.

QFT

WTF THAT SUPPOSED TO MEAN?
first you are implying that they sink low somehow recently.
second implication is that developing ds3 a quit popular game makes them sink even lower for some reason.
does not compute.

i'm preventively hating it.

QFT. +1 :)
Wicked thing, i had Lazarus on my mind for a week or so, got back to playing Ultima music on my keyboards and listening to Lazarus OST all the time..
First thing I thought when i saw the news about DS3 was : Wonder if Team Lazarus will port and The Ultima 6 Project guys will move there.;>

This would be the greatest thing ever.
Also, I'm actually optimistic.
Alpha Protocol is very good, New Vegas actually looks worthwhile and I generally do enjoy Obsidian games.

This might actually be perfect.
I have never gotten more than halfway through DS2.
Obsidian have issues with making more than half of a game.
A match made in heaven :p

Obsidian is not a name that fills me with confidence. But given that it's a comparatively simple action RPG, they might be able to reign in project scope to the point where they're able to hit the damn deadline. Compare this to how much playtesting and balancing Diablo 3 is going to get and... yeah.

I do like Obsidian. As long as you know you are buying a broken game that will require multiple patches.

Is this one going to be a proper modest turd or just a hack & slash?

Considering members of Team Lazarus has moved on and Team Archon is about to finish their Ultima 6 Project it's extremely unlikely. Hopefully Obsidian does not make 'yet another tunnel run game' out of it. They could actually learn something on that matter from Ultima V: Lazarus and The Ultima 6 Project :-p, afterall both still use DS engine but are completely different (and vastly superior IMHO) games compared to DS.