Lionhead Studios has announced it will be releasing new DLC for Fable II on 13 January.

Senior programmer Jonathan Shaw and fellow members of the team hint at what we can expect from the new episode in the latest instalment of Lionhead Studios' video diary.

Based on an island off the coast of Albion, Knothole Island will feature new quests, weapons, items and speciality shops, as well as a few new "quirky" characters, according to the developers.

Also available on 13 January is a free content update for Fable I, which will grant players a number of "gifts" from the people of Knothole Island.

Some of the fun items include Knight's Boots, Assassin's Gloves, a special Weight Loss Potion, and a collectible silver book. The update will also enable players to check their standing in over 50 new Leaderboards on Lionhead's website.

A final treat to cheer up those post-Christmas blues is an all-new Knothole Island Premium Theme for NXE. The theme will set you back 250 Microsoft points.

Knothole Island will be available on Tuesday and will cost 800 MP. In the meantime, head over to Fable II's page on Xbox Live to watch the new video diary from the team.