If we may believe several sources outside of Nintendo, then yes. According to these sources, Nintendo is currently working on an updated version of the Nintendo DS. Namely, a DS which features not only larger screens, but also dual touch screens. This way players can interact in-game on both screens.

The sources in question also stated that if this truly is something Nintendo’s working on they will most likely keep it to themselves until some time early next year. Nintendo representatives already dismissed this as pure “rumor and speculation”, but it would be quite odd if they contradicted their own policy by saying it’s real.

Rumors of a redesign started spreading rapidly as DS Lite sales have shown to be steadily declining in Japan, in spite of strong sales in Europe and North America. Not so long ago Michael Pachter also informed us of the possibility of a new DS being in the making, so could this be the same project he was talking about? As both sources are contradicting themselves about the time of a release, we don’t know what’s fact or fiction yet. Either way, Friendcodes.com will be the first place you’ll read about it.

Sources:

Rumor: Next Dual Touch DS Hitting Early Next Year?
Gamasutra - Nintendo Denies New DS Rumors