Yes, Big Shug himself dropped the news in a recent interview done with claaa7:
c7: All the way from your earliest 12″s and up to all your retail albums, DJ Premier has played a pivotal role in crafting the sound. Do you think it would be accurate to describe Preemo as your main producer?
Shug: Well, not really because what it is is, we’re brothers and we’re the legacy of Gang Starr, so that’s why we make sure to have a few songs on every album. Always letting people know that we have a good sound and great chemistry. Also we’re gonna do a collective album just the two of us, so that’s another thing in the can.
We go back and we’re family, you know, but as far as doing records I get a lot of different people, and Premier produces for everyone; but if you listen to the songs that him and I make there’s a chemistry there and a certain type of sound, so he’s always gonna be there, you know we’re always gonna make stuff together.
c7: That’s interesting you mention a full project with Premier as that is definitely something people been fiending for. What are the plans for its recording and when should we be looking out for that?
Shug: We’ll start working on that very soon, we’re gonna go on the road right after my album comes out – probably me, DJ Premier and Bumpy Knuckles. But as soon as we come back, me and him are gonna start working on that album; that’s definietly something that we’ll do.
You can read the full interview here. Interesting!