LucasArts has insisted that its physics-based next-gen Indiana Jones title has not been scrapped despite recent reports to the contrary.

IGN yesterday claimed that “multiple sources” had informed it of the title’s cancellation, with the development team being reallocated to other projects.

However, a LucasArts spokesperson issued a statement to Joystiq saying: “LucasArts remains absolutely committed to the Indiana Jones franchise. While we are aware that fans have been eagerly awaiting additional information on the upcoming game, they can rest assured that details are forthcoming.”

The fact that the release of the latest Indi film, The Kingdom of the Crystal Skull, came and went without a sniff of the game, coupled to widespread reports of internal development strife at LucasArts, caused most to believe the Indi project had been cancelled.

Indiana Jones’ 2008 big-screen outing joined Warner’s Dark Knight in failing to release an associated console game in conjunction with the release of the film, though rumours persist that a Dark Knight outing is still in the works – though whether it can steal the limelight from Eidos’s Arkham Asylum even if it does emerge is yet to be seen.