According to the Nihon Keizai Shimbun, Square and Nintendo have inked a deal under which Square will develop Final Fantasy games for Nintendo's GameCube.
Under the agreement, Square will also obtain the license to develop games for Nintendo's market-leading handheld GameBoy Advance.
The development costs for FF games on the GC will be covered by Nintendo President Hiroshi Yamauchi's Fund Q. A still unnamed company affiliated with Square will handle the development. No details have been announced so far. RPGFan will keep you posted on new developments.
Thanks to trilobyte for the tip.