The latest rumour around Prey 2 is that it is in development at Dishonored developer Arkane Studios.

Kotaku and Alien Noire are both reporting that the studio is starting from scratch on a sequel to the 2006 FPS Prey.

Apparently Bethesda has been trying to find a home for the game since it split with Prey developer Human Head in 2011.

According to the rumour source, Prey 2 was briefly a project at Fallout: New Vegas studio Obsidian, and Sniper Elite developer Rebellion turned down the opportunity to work on it.

The source added that not everyone at Arkane wants to make the game.

Prey 2 was announced at E3 2011, but disappeared shortly thereafter.

In related news, a former Human Head employee says that development on the game was much further along than most people realise.

Former Human Head narrative designer and writer Jason Blair took to Twitter to say that the game was well past the demo stage, but that it wasn’t released for political reasons.

“This Prey 2/Arkane rumor is giving new life to a lot of old lies,” he wrote.

“It was a lot more than a demo. Prey 2 was a full game. And a crazy fun one. The team was small but you wouldn’t have known it.

“What happened to Prey 2, from where I sat, was political. And petty. And potentially litigable. Human Head had a great game.

Blair said he was heartbroken when Prey 2 went into limbo.

“As for Arkane, I’ve enjoyed what I played of Dishonored. They have the chops. If the rumor is true, they’ll likely do well with Prey 2.

“But I mourn that Prey 2 won’t belong to Human Head. I mourn that my friends won’t get recognition for what they accomplished.”