Peter Molyneux plans to announce Fable III this morning at Germany's Gamescom.

Molyneux will be talking about the setting and the story of this third role-playing game during Microsoft's Gamescom press conference, which is scheduled to commence later this morning.

We'll bring you all the details of the announcement - and everything else Microsoft have to offer - once the presser begins at 10:00am Central European Time.

Update: And it's official. Fable designer Peter Molyneux has just announced Fable III for the Xbox 360.