Holy crap! I can't believe this is actually happening!

A good bit more info on the game:

* The full Japanese name is Okami Chronicles: Tiny Sun. It is indeed published by CAPCOM. It is being designed by Kuniomi Matsushita, the director of the Wii port of Ōkami, and Motohide Eshiro, producer of Ace Attorney Investigations: Miles Edgeworth and Onimusha 2. It is slated for a Japanese release sometime in 2010.

* Development began when Matsushita expressed an interest in creating a new Ōkami game, and showed Eshiro a technical demo of such a game in December of 2008. Because the demo was so well-done, development began on a sequel. The Nintendo DS was chosen due to both it being the most successful platform of this generation as well as the touch screen being ideal for controlling the Celestial Brush.

* The story takes place 3 months after Okami's story. However, the little wolf is named Chibiterasu and has some relation to Amaterasu from the first game. Apparently you can also team up with other celestial animals (hopefully more easily and frequently than it was to call their aid during the final boss fights). One of Chibiterasu's partners will be Kuninushi, son of Kushi and Susano. The producers did not reveal how Susano had a son in such a short amount of time, but stated that they would reveal it eventually.

Neutral-Bob wrote:

It's cute, but what surprises me is the fact that they made another Okami-based game. I'm not the most up-to-date guy but I thought that Clover was no more. I guess Capcom or somebody else picked the series up. I was seriously expecting Okami to be a one-hit deal.

Clover may be dead in name, but most of the key guys behind their awesomness founded Platinum Games.

http://en.wikipedia.org/wiki/Platinum_Games

They've done Bayonetta, Madworld, Infinite Space, and currently working on a TBA game with Shinji Mikami (Creator of the Resident Evil series and executive producer of Viewtiful Joe and Devil May Cry).