Developed largely by the team behind Dragon Age: Origins, it will take advantage of a new game engine, which uses Frostbite 2 as its foundation.
The engine enables the team to a deliver a more expansive world, better visuals, more reactivity to player choices, and more customisation.
According to BioWare's Aaryn Flynn, the game has been in development for nearly two years, and will combine a "great story with choices that matter, a massive world to explore, deep customisation and combat that is both tactical and visceral".
No release date or platforms have been announced, leading to speculation that the new game will release on next-generation consoles.
Dragon Age 3, which was rumoured for a gamescom reveal, will reportedly take place during a civil war in Orlais, a French-themed location on the continent of Thedas.
As an Inquisitor, players will travel to Orlais to investigate the cause of the conflict, choosing to send in armies, spies or use political tactics to uncover the truth.
The civil war is said to stem from a plot to release hordes of demons across the land, orchestrated by a shadowy and corrupt individual.
It is also believed to include co-operative multiplayer, and will feature rogues, warriors and mages, as well as a companion system.
The most recent addition to the series, Dragon Age 2, was released for Xbox 360, PC and PlayStation 3 in March last year.
> Read Digital Spy's Dragon Age 2 review
Watch a trailer for Dragon Age 2 below: