IGN reports that "multiple sources" at LucasArts and "elsewhere" indicate that the developer's next-gen Indiana Jones game has been canceled; however, Joystiq has contacted LucasArts for an official statement and things don't appear so cut-and-dry.
According to a LucasArts representative, "LucasArts remains absolutely committed to the Indiana Jones franchise. While we are aware that fans have been eagerly awaiting additional information on the upcoming game, they can rest assured that details are forthcoming."
Well, that doesn't sound like the game is dead, although there's certainly wiggle room in that quote to speculate that the long-in-development title has been killed with another taking its place. Of course, that would just be our old friends Rumor and Speculation stopping by to say hi.