Rumors about Metroid Prime and Donkey Kong Country Returns developer Retro Studios has been working on for the past two years have led to some fairly wild rumors. One of the more popular, but less likely ideas out there is that the studio is working on a new take on the Zelda franchise.
Apparently, the idea isn't that far-fetched. How do we know? Shigeru Miyamoto, master of all things Zelda, said so.
Miyamoto told IGN that he wouldn't necessarily be opposed to working with Retro Studios to make a Zelda game, but the studio is currently working another project and is simply too busy.
"Retro is very busy right now, but I'm afraid I can't say exactly what it is that they're very busy [working] on," Miyamoto said... "In terms of them working on a Zelda, it's not out of the question, certainly, for them to work on an entire Zelda game amongst themselves."
Miyamoto went on to say that any studio working on a Zelda game would need to coordinate with the Zelda team in Japan, which means that working with Retro, which is based in Austin, TX, would be a difficult and time-consuming proposition.
"Traditionally I think that the Zelda team has always had a close contact with anyone who's working on a Zelda game. If you were going to have that happen in the US at Retro, that would be kind of difficult for them to be able to coordinate. Certainly they're too busy for that sort of thing right now."
So no, there is no Retro-made Zelda game yet. The good news is, it's not outside the realm of possibility.