Japanese gaming magazine Jump has confirmed that a remake of Dragon Quest VII is in the works for the Nintendo 3DS.
Details thus far are precisely what you'd imagine - it's a full-3D remake of the PlayStation title, which originally released in Japan in August 2000. The title did make it to North America the following year, but never came to Europe.
It'll include a StreetPass feature which will allow players to exchange lithographs - though if this'll be significant to wider gameplay isn't clear. Dragon Quest IV, V and VI were all remade for the Nintendo DS, and Dragon Quest IX also landed on that console.
For those worrying about a localization after seeing Square Enix pass on bring over Bravely Default and Final Fantasy Type-0, remember that it was Nintendo, not Square Enix, who released Dragon Quest VI and IX in the West. They had some success, and are keen to maintain a solid first party line-up for the 3DS - so even if Square Enix pass, chances of a localization remain good.