Although it's true that NiGHTS 2 rumors have been going around since, like, three days after the release of the Saturn original, this one is notable in that it comes from a pretty reliable source: Game Weekly, a Chinese game publication.
I'm still a little (OK, alot) skeptical, myself. I honestly don't think it is possible to create a worthwhile sequel to NiGHTS at this time, as the original is a masterpiece in itself and should be left to soak in its own brilliance for a few years longer. I would much rather see a remix or sequel to Burning Rangers, or a new original Sonic Team title. But in the end, it's not going to be what I want, or even what Sonic Team wants, it's going to be whatever'll sell...
But then, this does come from a Chinese publication, and you can pretty much get anything you want out of that intolerably complex mandarin writing system. I read an article from it that was either about Sonic Team's indecision on the controversial "Claris shower scene", or the effects of acid rain on game sales in Lithuania. Or maybe both. (BTW, I'm kidding, I can't really read Chinese. It can't be helped, I just can't take all these NiGHTS 2 rumors seriously anymore...)