It's rumored that Star Wars: KOTOR is being revisited in some sort of sequel and/or remake - retooled to fit into the new Star Wars canon. This follows hot on the heels of Jedi: Fallen Order, which released to mostly positive reviews and restored some fans' faith in EA's treatment of the franchise.
According to the rumor, the new game will incorporate elements from both the original KOTOR and its sequel with the purpose of canonizing places, characters and events from the KOTOR series. Following the purchase of Lucasfilm, Disney decided to cancel all Star Wars canon outside of the six George Lucas movies. This would be a way, then, to reincorporate all the fan-favorite elements from possibly the most beloved Star Wars game ever made.
While two sources have reported that a new KOTOR game is in development by Star Wars license-holders EA Games, they differ as to what exactly the new game will be. One claims that the game will be essentially a sequel built from its predecessors, while the other claims a more straightforward remake of the original 2003 KOTOR.
Disney-era Star Wars has already tipped its hat to the KOTOR saga in The Rise of Skywalker with the name Revan popping up in the film (link for context, with Rise of Skywalker spoilers.)
This new rumor follows an interview from April 2019 in which president of Lucasfilm Kathleen Kennedy stated that the company was developing something KOTOR-related. At the time she simply described it as "something to look at," seemingly leaving the door open for the KOTOR saga to either be adapted into a film or re-adapted into a video game, as these new reports seem to suggest. With Disney only ever cancelling many of its previously-planned films following the subpar performance of Solo at the box office, a film can now pretty safely be ruled out, especially if this rumor is to be believed.
Source: IGN