Grasshopper Manufacture is at work on Lollipop Chainsaw, but is already detailing the next game in its pipeline. The game is titled Killer Is Dead, and it's scheduled to release on PlayStation 3 and Xbox 360 in 2013.
Despite the name and legacy, Andriasang reports (via Famitsu magazine) it's not a sequel to Killer 7. Instead, you take up the role of the "Executioner," who makes his bones traveling the world to put down S-level criminals. The theme of the Moon somehow relates to the game's villains, and the protagonist has someone he wants to protect.
The swordplay in the game is similar to that of No More Heroes, though it will build other gameplay mechanics on top of that. Suda 51 is serving as scenario creator and executive director, with Yoshimi Yasuda as executive producer. The game will be published in Japan Kadokawa Games; no release plans for the west have been detailed yet.