The latest issue of Famitsu Magazine (as reported by Andriasang) has revealed a new adventure by Suda 51 and Grasshopper Manufacture. Entitled Killer is Dead, the game will be coming to both Xbox 360 and PS3, and though it isn't a direct sequel to Killer 7, it will be a spiritual successor to Killer 7 and the No More Heroes games.
Similar to No More Heroes, the main character (Executioner) will be tasked with defeating "S level criminals," and the game will focus on swordplay. Suda is listed as executive director for the game, which is being touted as a "Dark Side 007."
Source: Andriasang