Satoru Iwata revealed during his keynote speech today at the Game Developers Conference that a new Zelda title is in development for the Nintendo DS handheld. The game is titled "Legend of Zelda: Phantom Hourglass" and sports a similar cel-shaded graphical style used in the GameCube titles The Legend of Zelda: Wind Waker and Four Swords Adventures. The top Nintendo DS screen is used for maps while action takes place on the lower screen. Players can touch the screen to draw things, which transfers the bottom screen input to the top. The game will release later this year and will be playable at the May E3 Expo alongside The Legend of Zelda: Twilight Princess for Nintendo GameCube. More details soon.
Update: Check out some more images courtesy of Wired.com. Also, a video of the game courtesy Nintendo-Europe.