The company announced the news at its Paris Invitational event on Friday, showing off a trailer and 20 minutes of gameplay footage.
According to Next-Gen.biz, Diablo III's storyline takes place 20 years after the events of Diablo II. The company release reads:
"Mephisto, Diablo, and Baal have been defeated, but the Worldstone, which once shielded the world of Sanctuary from the forces of both the High Heavens and the Burning Hells, has been destroyed, and evil once again stirs in Tristram...."
There are also 60 screenshots and pieces of concept art available for viewing at the official Diablo III website.
The 3D graphics engine is new, and physics are powered by Havok, but no release date has been set.