Rumours that a new Steven Spielberg gaming project has been shelved are untrue, according to EA.

The rumours started after a report stated that "almost everyone" working on the project had been affected by the EA job cuts and been made redundant.

However, EA has said that the game, currently known as LMNO, is still very much in production.

"Rumours that LMNO has been cancelled are false," said an EA spokesperson.

"LMNO is in development at EALA under the creative leadership of Doug Church, the creative director, and Lou Castle, the executive producer."

All that is known about LMNO is that it is an action adventure game being developed for Xbox 360 and PS3.

It will be the second of the three games Spielberg agreed to create for EA back in 2005, the first of course being Boom Blox (known internally as PQRS) released earlier this year for Nintendo Wii.