No, your eyes do not deceive you. Duke Nukem Forever is back, at least in unconfirmed rumor form, but if those rumors turn out true we'll all be playing some portion of it sooner than anyone could in their right mind have possibly thought. According to Kotaku, various anonymous sources now say that Duke Nukem Forever is now in development at Gearbox, the developer behind Borderlands, and one source even said a demo could be available before the end of the year.
For those who need a quick refresher, Duke Nukem Forever had been in development at 3D Realms since 1997 (for perspective, that was the year Batman & Robin came out), until the game's future was made less clear than ever when the development team at 3D Realms was disbanded last year. But now, if this new rumor is accurate, evidently the project remains alive with Gearbox (which, you may recall, was apparently at one point developing a now-canceled Duke spin-off called Duke Begins).
Of course, whether this rumor is accurate remains to be seen, as a wave of "no comments" has been issued by all interested parties. Take-Two confirmed to Kotaku that they retain the publishing rights to the game, but didn't comment on whether Gearbox was now working on it. 3D Realms founder George Broussard -- who had long been leading development on Duke Nukem Forever -- didn't respond either, and Gearbox president Randy Pitchford also declined to comment, although he curiously said that he might be able to "clarify the situation" at the Penny Arcade Expo in September.
In the meanwhile, it looks like a glimmer of hope -- if only a glimmer -- remains for one of the most storied projects in videogame history.
"No comment" does not mean "no"...
EDIT:
No longer a rumor.