Masayuki Ozaki, the General Manager of Overseas Development at the anime studio Sunrise, confirmed that the studio is "looking forward to releasing" the new Code Geass anime project next year, although its production is behind schedule. During Sunrise's industry panel at Otakon on Sunday, Ozaki referred to the new project as the "next season of Code Geass" and noted that its director is Kazuki Akane (The Vision of Escaflowne, Noein - to your other self).

Ozaki described the project as taking place "in the same world as Lelouch [the protagonist of the earlier Code Geass anime] except with different characters (...) the stage is set in Europe, so we'll see a lot of European countries."

The Code Geass Gaiden Bōkoku no Akito project was announced in April of last year. The side story is set in the European warfront, where a Knightmare unit made of boys and girls from Zone Eleven is sent into a military operation with a 5% chance of survival. They must rescue an allied unit left behind on the European warfront. Apart from Akane, the credits include Shigeru Morita (Mobile Suit Gundam Seed, Blood+), with Takahiro Kimura once again adapting CLAMP's original character designs for animation (as he did for the previous Code Geass anime). Akira Yasuda returns to design the mechanical Knightmare units.

source: animenewsnetwork

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Yay! I heard about there being an R3 but i thought it was a rumour.