Microsoft is in talks with several independent European studios to create a new Project Gotham Racing for Xbox 360, according to a “trusted source” of Develop Online. Microsoft’s still undecided on which studio it’ll select to take up the project, though, if the publication’s sources are accurate.

The most recent game in the popular racing franchise is Project Gotham Racing 4 (pictured above), which was developed and released in 2007 by Bizarre Creations. However, after the developer was purchased by Activision that same year, they confirmed that Project Gotham Racing 4 would be the last game they develop under the distribution of Microsoft. Microsoft, however, still owns the property and retains all of its assets.

Stay tuned.