A while back, DC approached Alan Moore about doing new Watchmen stories, and in return would give Moore the rights. Suffice to say Moore declined DC's "generous" offer.
Recently, all kinds of names have been associated, including a Cosmic Book News Lawrence Napoli favorite - Amanda Connor (sorry Lawrence, turns out untrue), as well as JMS, JG Jones, Andy Kubert, Brian Azzarello, Kevin Smith, Adam Hughes, Dave Gibbons, John Higgins and Darwyn Cooke.
Now, Bleeding Cool has it on good word from a higher-up at DC Comics that a new series of Watchmen prequel minis are underway with Darwyn Cooke at the lead. Cooke will be doing one or two of the mini's along with some of the above listed names.
Bear in mind that, so far, DC has yet to confirm any of this.