No one at Naughty Dog is working on a new Jak game, at least not that we know of. But that won’t stop fans from re-imaging classic levels from older Jak games in modern engines.
Artist Floordan is working on a project he’s calling Jak 2 Renegade: Reborn which aims to recreate Jak 2 in CryEngine.
He started by remaking the Pumping Station level and capturing a video of it. Of course this may never get released and could orever remain a fan curiosity.
Given the industry’s current trends, it’s hard to imagine a Jak & Daxter game of this calibre happening.