http://gonintendo.com/?mode=viewstory&id=167062&sid=37fd8eee3466b11a0e12d43b230020de

From article:

"Talk about one HELL of a juicy rumor. This information comes from our old friend Creamsugar, who received the information from an unnamed source. This would be the same source that Creamsugar cited in the accurate leak of Monster Hunter 3G for 3DS. The information comes via Twitter.

creamsugar creamsugar
We all don’t believe it’s “that 7”, right? So I said it’s “this 7”.
5 hours ago

creamsugar creamsugar
It’s a remix version of the 7th game of a famous (J)RPG series, and will sell half year later of a spin-off game of the series.
5 hours ago

creamsugar creamsugar
OK here is the rumor: big N will announce a megaton on next year’s meeting which to celebrate 3DS sold XX million.

Dragon Quest VII or Final Fantasy VII are the two names being tossed about. I'm thinking FFVII would do better worldwide. Which one do you think it'll end up being? Do you think the rumor is completely bunk?"

Well if either is true it would mean alot. The Spin-off game talked  about here could even be Theatrhythm Final Fantasy. 

I'm not that sure but I think FFVII was produced by Sony so I don't see it coming for 3DS.

I want DQVII!!

Yeah it's not FF7.

Dragon Quest VII makes more sense for a number of reasons, between FFVII's strong association with the PS brand and the fact that Nintendo is trying to court Dragon Quest more and more over time.

Uh, so which one is it??

But the thing is the Dragonquest game won't really be, what I call a "megaton" announcement  like say MH4 for 3ds. It's actually expected to come on 3ds sooner or later I think.

A FinalFastasy 7 remake on the other hand....

                                                                                 .

It probably wont be ether of them, and to do FFVII on such a small scale would be the biggest disapointment of my life

Yeah, I'd say it's a possiblity that we'll see FFVII OR DQVII. Nintendo has been doing pretty good with Square-Enix thus far, and if they can yank FF away from Sony and restore it to its former brilliance, it'll be all for the better.

Added the bit about Theatrhythm Final Fantasy in the OP