The rumour is sourced from JRPG Tribe, a website dedicated to Japanese role playing games. According to them, a staff member attending the London MCM Expo spoke with a representative for Nintendo's European branch, who went on to confirm (off the record, as always) that The Last Story was in the midst of an English localisation, and would at the very least be arriving in PAL territories.
The Last Story is a Japanese role playing game designed and directed by industry veteran Hironobu Sakaguchi. A collaborative project between Sakaguchi's studio Mistwalker and Nintendo, The Last Story has yet to receive any official word of localisation outside of Japan, despite many requests from Wii owners looking for something new to play.
What will come of this rumour? Who knows. The sourcing is very much hear-say, so it's impossible to lay down any evidence to back the claim. However, with E3 2011 right around the corner, we could be looking at a formal announcement then.

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