Gearbox Software has been confirmed to take over development of the game, which is being publicly shown at Penny Arcade Expo in Seattle this weekend.
The infamous project was first announced in 1997 by 3D Realms and was allegedly in development until last year when the studio closed its doors, effectively halting its release.
Gearbox CEO Randy Pitchford told the Wall Street Journal: "Clearly the game hadn't been finished at 3D Realms but a lot of content had been created.
"The approach and investment and process at 3D Realms didn't quite make it and it cracked at the end. With Gearbox Software we brought all those pieces together. It's the game it was meant to be."
It had been rumoured that the Borderlands studio was planning to reveal the project last month.
It is expected to be released next year for Xbox 360, PS3 and PC.