Nexon has announced a licensing agreement to use Valve Software's Source engine in an upcoming title.

"The upcoming Source-based game, which will to be formally announced at a later date, will be a fantasy based, third-person action title.

"We evaluated all the engine technologies available for licensing and Source was our best choice," said Dong-gun Kim, the producer of NEXON. "With support for integrated network-physics, high-end visuals, and constant adoption of new features, Source is both the most flexible as well as the most robust technology set available today."

"It's an honor to have one of the leading publishing and development studios in the world working with Source," said Gabe Newell, president and co-founder of Valve. "We look forward to working closely with NEXON to supply them with the tools and technology needed to create a working base for creating top-notch games that will be recognized as world-class online offerings."

Source technology is available for licensing to any digital content creator working on PC and/or Xbox 360 products."