It will not be set in Planescape setting or use D&D rules as those are owned by Hasbro/Wizards of the Coast.
The game would be made by inXile games and Colin McComb who worked on the original game with Chris Avellone. Avellone said that McComb has his "blessing" for the game but it's not known if he will be a part of it as he's working on Obsidian's Project Eternity. The game is still in early pre-production as most of inXile are probably working on the upcoming Wasteland 2. It's unknown if this will be a Kickstarter project, but that would seem likely, especially if Wasteland 2 does well.
Apparently they have the name "Torment" trademarked already.
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