The Creative Assembly's studio in Brisbane, Australia is working on a London Olympic Games title according to a source close to the developer.
The game will be released in time for the Games themselves in 2012, the source told Eurogamer.
Yesterday word spread that Creative Assembly's Australian studio was working on a "next-gen sports" title with a "casual" angle.
This prompted speculation that it could be derived from SEGA's Football Manager IP, but Miles Jacobson of developer Sports Interactive tweeted that it was not.
"There are some brilliant rumours going round today that Creative Assembly Oz are working on FM for consoles," he wrote. "False."
"I can't say what they are working on. They'll announce when they are ready to. But it's not one of our games at all."
There's no more detail on the new Olympics game yet, although SEGA has produced licensed summer and winter Olympics titles for several years, including Beijing 2008, Vancouver 2010 and the Mario & Sonic series.
SEGA told Eurogamer it had no comment to make on Creative Assembly's new Australian project.
SEGA's managing director of European development Gary Dunn told our sister site GamesIndustry.biz last July that he would love to see a London Olympics game developed in Britain.
"It would be a wonderful opportunity for a game developer in the the UK to make an Olympics game. I would love that opportunity to get involved in that on next-gen. But we'll have to wait and see, as a British game developer that would be fantastic," he said.
He sort of got his wish then: within SEGA's corporate structure the Australian studio would be overseen by Dunn.