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Ghutto said:

What's the problem if he is the director or the co-director? This is a colaboration between Mistwalker and Nintendo and The Last Story is a Nintendo's Trademark. After all this is a Nintendo's game. I believe that Mr. M is Miyamoto.


Miyamoto doesn't co-direct, and really doesn't direct anymore at all.  He certainly wouldn't direct a game under Sakaguchi either, much less an RPG (a genre he's confessed to personally not liking, repeatedly).

Besides, we know that one of the AQi groups (Artoon, Feelplus, Cavia) is working on a Nintendo game they can't name under contract.  That's probably this.  We've had no indication at all that Nintendo's doing any development themselves on it either.