The Ghibli World Website is reporting that Studio Ghibli distributor Toho has announced that Oscar-winning director Hayao Miyazaki's next film will be Ponyo on a Cliff (Gake no ue no Ponyo), the story of Sasuke, a five-year-old boy , and a Princess Goldfish (Ponyo) that wants to become human.  Production on the film began last October and it is slated to be released in the summer of 2008.  Miyazaki is creating the storyboards himself in watercolors and it is thought that the feature will be produced in the traditional hand-drawn 2-D manner.

Although early reports from China indicated that Miyazaki's new film would be based on a Chinese children's book, I Lost My Little Boy (see 'Miyazaki's Next Movie?'), it is now clear that it will be based on an original story by Miyazaki himself.  Miyazki's grandson has been chosen as the model for the 5-year-old boy.  About 70-80% of the film, which apparently shares some thematic elements with The Little Mermaid, takes place at sea.  Miyazaki and the Ghibli staff have been location hunting in the vicinity of Tomo-no-Ura.