Oh, come on, is this really news-worthy?
One, it's an entirely unsubstantiated rumour.
Two...would anyone actually be surprised if it were true? I mean, even then, would it be news-worthy? Personally, I don't think so, for one simple reason: Fable II = Fable.
From inception, through the development (aka "hype") cycle and on to the release, with subsequent contemptible lack of true critical reviews, this game has brought nothing new to the genre nor has it done much to improve on its predecessor (save for technical advancements). Same exact graphic style, simplistic moralizing and ridiculous "emote-esque" character interactions, down to the childish take on combat and fantasy in general. Why, even the whole "it's for consoles only" thing is shaping up the same.
Anyone recall what happened with Fable? Let's review: it was purportedly for the XBOX alone, then, after achieving a certain measure of financial success, it was ported over to the PC with the subtitle "The Lost Chapters." What did these chapters entail? Venturing to a snow-covered isle where a mystic shrine allowed you to engage in further "adventures" (the quotes are quite intentional).
...say, what was just announced for Fable II? Some new DLC? You don't say. Whatever does it feature? From the release: "...island of Knothole is dying: its golden sands and lush vegetation are covered with snow, its people freezing, its treasures buried. Only a hero can face the trials of the three shrines to bring back the sunshine." Wow, how very original and completely unexpected!