Via a post on the company's official forum, studio leader Martyn Brown confirmed that the game is in the final certification stages and that Microsoft was set to confirm when the game would be released.
With the new Lemmings looming, the news makes Team 17 the first independent studio confirmed to have games ready for both the Xbox and PlayStation digitial distribution systems.
But they probably aren't the only ones: a slew of UK studios are hard at work on games for digital download networks as delivery mechanisms for smaller, cheaper to produce games - that, most importantly, have more favourable royalty rates when it comes to sales and contract negotiations - become more and more attractive.
Yesterday, Buena Vista and Isle of Wight-based Stainless confirmed that it was partnering for the December release of Novadrome. A few weeks ago, Blitz Games announced it was opening a whole division - caleld Blitz Arcade - dedicated to download games.
Meanwhile, Sumo Digital has produced Go! Sudoku for SCEA, which will roll out alongside Lemmings 2 when the PS3 launches in the US next weekend.