Project Formation Z will take the basic 'transforming robot' gameplay of the original and bring it up to date with 2.5D visuals and modern production values.
The release is slated for "202X", and PlayStation 4 is the only confirmed platform so far – although additional platforms will be announced in due course.
The original arcade game was notable for its morphing robot craft and was ported to the MSX and Famicom in the '80s. It later came to Hamster's Arcade Archives collection on Switch.
Here's some Google-translated PR from the game's official Japanese website:
Ready yourself for an intense robot shooting raid battle like never before!
Here’s one of the most emblematic titles from Jaleco, Formation Z. Take the form of a humanoid robot or the form of an aircraft to defeat your enemies in a brand new game with updated graphics and sound design. Soldiers, in formation. A shivering and exciting return awaits us!
You can view more gameplay footage in the video below, around the 59:25 mark: