It is going to be an anime project according to Anime News Network. Takahashi-sensei is contributing the character designs, and much of the same key crew that worked on the original anime are involved in this project.
I tell you, though, it's good to see some more Inuyasha after all this time. Hard to believe it's been 12 years since the manga ended. I still remember back in 2002 when the animed debuted on Adult Swim. Good times.
Sing it with me now:
The was actually my favorite ending. I remember recording this ending just so I could listen to it whenever I wanted.